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stiks02 [169]
3 years ago
5

In an essay tell me what this graph presently tells you about the country as an economy and what conclusions you can draw about

its future economic growth.

Social Studies
1 answer:
ValentinkaMS [17]3 years ago
6 0

From the graph we can analyse that the economy is in equilibrium.

Explanation:

The horizontal part of the graph represents quantity and the vertical part of the graph represents price . The downward slopping graph is known as demand curve and the uprising graph is known as the supply curve . In the present scenario the economy is in equilibrium as the demand curve and the supply curve intersect each other.

But in the future suppose the price of goods rises then the consumers will have to reduce the consumption that is a scenario of inflation will take place and the consumers will demand less. On the other hand if the price falls the consumer will demand more a scenario of deflation will occur . In case of inflation as well as deflation economic growth will be hampered but in the equilibrium position the economic growth will take place.

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