Chap 16 & 17- Economics Course Companion (Oxford)
Point e to point g
Point e to point b
Point e to point a
Point e to point c
Is AS1
Connects points a and e
Is AS2
Connects points e, b, and d
Aggregate demand will increase to AD2
Aggregate supply will shift even further to the left
Aggregate demand will shift to the left
The economy will move from point b to point a
LRAS curve
SRAS curve
Permanently increase unemployment
Temporarily increase unemployment
Permanently increase inflation
Temporarily increase inflation