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Economics A Level (DONEEEEEEE)

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Pregunta:

AD and SRAS Diagram -AD Shifts to the Right. Explain what has Happened and will happen?

Autor: eric_galvao



Respuesta:

-When AD Increases to AD2, a New Equilibrium will be setup at a higher Real GDP and Price Level -More Output then means more Labour [Derived Demand] leading to less Inflation -But the Higher Prices means that 'Demand-pull Inflation' has Occurred -The Opposite [AD Falling] is True [Unemployment Up, Output down, but Inflation down]


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-When AD Increases to AD2, a New Equilibrium will be setup at a higher Real GDP and Price Level
-More Output then means more Labour [Derived Demand] leading to less Inflation
-But the Higher Prices means that 'Demand-pull Inflation' has Occurred
-The Opposite [AD Falling] is True [Unemployment Up, Output down, but Inflation down]
1 answer(s) in total