![22.2 Aggregate Demand and Aggregate Supply: The Long Run and the Short Run – Principles of Economics 22.2 Aggregate Demand and Aggregate Supply: The Long Run and the Short Run – Principles of Economics](https://open.lib.umn.edu/app/uploads/sites/180/2016/05/63d5ca2656edb1c374ea9ef9d03b6d17.jpg)
22.2 Aggregate Demand and Aggregate Supply: The Long Run and the Short Run – Principles of Economics
![SOLVED: 'a) Is the economy facing an inflationary or a recessionary gap?b) What policies can the government implement that might bring the economy back to long-run macroeconomic equilibrium? Illustrate with a diagram.c) SOLVED: 'a) Is the economy facing an inflationary or a recessionary gap?b) What policies can the government implement that might bring the economy back to long-run macroeconomic equilibrium? Illustrate with a diagram.c)](https://cdn.numerade.com/ask_images/61589bfed7854b4890d6ad512c7d9a76.jpg)
SOLVED: 'a) Is the economy facing an inflationary or a recessionary gap?b) What policies can the government implement that might bring the economy back to long-run macroeconomic equilibrium? Illustrate with a diagram.c)
![SOLVED: In the accompanying diagram, the economy is in long-run macroeconomic equilibrium at point E1 when an oil shock shifts the short-run aggregate supply curve to S R A S2 a. How SOLVED: In the accompanying diagram, the economy is in long-run macroeconomic equilibrium at point E1 when an oil shock shifts the short-run aggregate supply curve to S R A S2 a. How](https://cdn.numerade.com/ask_previews/9ee43c4e-9c57-44f8-bd47-5d68a04cc51c_large.jpg)
SOLVED: In the accompanying diagram, the economy is in long-run macroeconomic equilibrium at point E1 when an oil shock shifts the short-run aggregate supply curve to S R A S2 a. How
![Suppose that the Canadian economy is initially in long-run macroeconomic equilibrium. a. Draw a diagram that includes the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves to illustrate this situation. Suppose that the Canadian economy is initially in long-run macroeconomic equilibrium. a. Draw a diagram that includes the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves to illustrate this situation.](https://homework.study.com/cimages/multimages/16/nishant23026038919913519294577.jpg)
Suppose that the Canadian economy is initially in long-run macroeconomic equilibrium. a. Draw a diagram that includes the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves to illustrate this situation.
![22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics 22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics](https://open.lib.umn.edu/app/uploads/sites/180/2016/05/7b62fdbf653dfcb85fd08b78b15b6275.jpg)
22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics
![Suppose the economy is currently in long-run macroeconomic equilibrium, with actual GDP equal to potential GDP. a. Depict this situation using AD-AS, being sure to label all curves and axis. Suppose t Suppose the economy is currently in long-run macroeconomic equilibrium, with actual GDP equal to potential GDP. a. Depict this situation using AD-AS, being sure to label all curves and axis. Suppose t](https://homework.study.com/cimages/multimages/16/7777777777260450680820496783.jpg)