Essay
Assume the economy is initially in equilibrium with real GDP equal to potential GDP and the inflation rate at its target.Use the aggregate demand and aggregate supply model to analyze the short-run and long-run effects on real GDP and inflation when the economy experiences a positive demand shock.
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Q20: Figure 14.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 14.1
Q21: Figure 14.3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 14.3
Q22: Shifts in the IS curve _ the
Q23: Assume the economy is initially in equilibrium
Q24: Figure 14.3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 14.3
Q26: Figure 14.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 14.1
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Q30: Figure 14.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 14.1