- Click on the icon to study the Economics in the News article. Then answer the following questions. The graph illustrates the economy in the first quarter of 2017. Assume that both aggregate demand and short-run aggregate supply change to restore full employment. Draw the two curves that will have restored full employment. Label the curves. Draw a point at the new macroeconomic equilibrium.
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The graph shows the initial Aggregate Demand (AD) curve labeled as AD17 and the initial Short-Run Aggregate Supply (SAS) curve labeled as SAS17. Show more…
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