AB 204 Unit 9 Assignment Monetary and Fiscal Policy, Macroeconomic Fluctuations and Macroeconomic Equilibrium
What is the initial point of the long-run macroeconomic equilibrium? What are the equilibrium values? What does the appearance of the long-run aggregate-supply( LRAS) curve indicate? How does it differ from AS?
What are the factors that can shift short-run aggregate supply curve from AS1 to AS2? What does Point A represent in the graph? What does point B represent? Is it the short-run or long-run macroeconomic equilibrium? Explain.
Assume aggregate demand( AD) is held constant, in the long-run, starting from point B, what will the economy likely experience? Will it reach the long equilibrium?
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AB 204 Unit 9 Assignment Monetary and Fiscal Policy, Macroeconomic Fluctuations and Macroeconomic Equilibrium
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1. Refer to the sets of the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves. Use the graphs to explain the process and steps by which each of the following economic scenarios will shift the economy from one long-run macroeconomic equilibrium to another equilibrium. Under each scenario, elaborate the short-run and long-run effects of the shifts in