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Mila [183]
3 years ago
14

IE 8-2 ... AS/AD Model – Suppose this economy was initially at Full Employment, but then experienced two large LEFT shifts of

AD. If the Price Level declines to $1.90, then Real Production GDP will have fallen to $4000 b and ______ people will have lost their jobs. In the Business Cycle the economy will have moved from Point "x" to Point _________ ..
Business
1 answer:
Galina-37 [17]3 years ago
6 0

Answer:

10 million people. Point "t".

Explanation:

This analysis can simply be referred to as a severe recession which is also known as depression. It is defined as a condition whereby Gross Domestic Product is down by approximately 10% and there is about three to four years recession. Based on the above definition and the analysis given in the question, the situation is similar to a depression. Thus, the number of people that would have lost their jobs is 10 million and there is an adjustment from the "x" to "t".

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Answer:

Find attached

Explanation:

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Download xlsx
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