The Aggregate Demand Curve | Marginal Revolution University
The Aggregate Demand Curve | Marginal Revolution University
Apr 18, 2017
mru.org
The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve(LRAS) for the economy in January 2025. According to the graph, this economy is in a recession. To bring the economy back to the naturallevel of output, the government could use a contractionary monetary or fiscal policy such as increasing taxesShift the appropriate curve on the following graph to illustrate the effects of the policy you chose.PRICE LEVE
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