The graph shows aggregate demand, long-run aggregate supply, and the short-run aggregate supply curve, using modern Keyn

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The Graph Shows Aggregate Demand Long Run Aggregate Supply And The Short Run Aggregate Supply Curve Using Modern Keyn 1 (38.59 KiB) Viewed 25 times

The graph shows aggregate demand, long-run aggregate supply, and the short-run aggregate supply curve, using modern Keynesian analysis. Suppose that there is an increase in real interest rates. 1.) Using either the line drawing tool or the 3-point curved line drawing tool, show the short-run effect on the economy. Properly label the curve. 2.) Using the point drawing tool, identify the new short-run equilibrium price and output. Label the point 'E,'". Carefully follow the instructions above, and only draw the required objects. Price level 140- 120- 100- 80- 60- 40- (12.6,69.1) LRAS 12 Real GDP ($ trillions) SRAS SRAS, AD 16 20 Q