Identify and describe changes in as-ad graph

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Reference no: EM1371049

Q. A. Draw aggregate demand-aggregate supply model of macro economy for short run, assuming that economy is in expansionary phase of business cycle. Label aggregate demand curve as AD and aggregate supply curve as AS. Be sure to label axes appropriately.

B. Identify and describe changes in AS-AD graph above that would result from cost-push inflation.

C. Identify and describe changes in AS-AD graph above that would result from demand-pull inflation.

D. Identify and describe changes in AS-AD graph above that would result from implementation of contractionary fiscal policy.

E. Identify and describe changes in AS-AD graph above that would result from implementation of an easy monetary policy.

Reference no: EM1371049

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