The following graph shows an aggregate demand AD curve and a

Last updated: 1/28/2024

The following graph shows an aggregate demand AD curve and a short run aggregate supply SRAS curve for an economy Suppose that the economy is initially in a short nun equibnum at Py and Real GDP is 25 billion Suppose that at some point the price decreases to P PRICE LEVEL A P there is atput and consumers 18 m 21 H 14 HEAL GDP on t of 5 BRAS Ad M billion goods As a result the price level consumption a shortage or a surplus Falls or remains the same or rises Decrease or do not charge or increase firms