Illustrate and graph
quihac1.) List three factors that can change the economy’s potential output. What is the impact of shifts of the aggregate demand curve on potential output? Illustrate your answer with a diagram.
2.) Give an example of an adverse supply shock and illustrate graphically. Now do the same for a beneficial supply shock
3.) Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis.
$100 | $150 | $-50 |
$200 | $200 | $0 |
$300 | $250 | $50 |
$400 | $300 | $100 |
9 years ago
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