23 Jul AT WHAT POINT DOES IT INTERSECT THE HORIZONTAL AXIS?
On a piece of graph paper draw a set of axes such as those in the figure above but do not draw the Show more On a piece of graph paper draw a set of axes such as those in the figure above but do not draw the supply curves shown there. Instead draw a long-run aggregate supply curve based on the assumption that the natural level of real output is $3000 billion. What is the slope of the curve? At what point does it intersect the horizontal axis? Next draw a short-run aggregate supply curve based on the assumption that the expected level of inpout prices is 1.5. Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like? Show less
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