The following graph shows an economy s short run aggregate

Last updated: 1/28/2024

The following graph shows an economy s short run aggregate supply curve SRAS current equilibrium aggregate price level P and real GDP Q The economy currently has Natural Real GDP QN of 6 trillion Use this information to place the orange long run aggregate supply curve LRAS square symbols in the correct position on the graph PRICE LEVEL 0 REAL GOP Trilions of dolara REAL GDP Trillions of usag SRAS 1 above or below It LRAS The equilibrium A shown on the graph reveals that real GDP Q1 is shifting SRAS Natural Real GDP As a result wages will over time Save Continue Continue without saving