Assume an economy operates in the intermediate range

Reference no: EM13690318

Assume an economy operates in the intermediate range of its aggregate supply curve.

State the direction of shift for the aggregate demand or aggregate supply curve for each of the following changes in conditions:

A. Price of crude oil rises significantly

B. Spending on national defense doubles

C. The cost of imported goods increase

D. An improvement in technology raises labor productivity

What is the effect on the price level? On Real GDP? On employment?

Reference no: EM13690318

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