Figure 11.2 shows the relationship between the price level and real GDP.Suppose the economy is currently at e'.A leftward shift of the short-run aggregate supply curve would return the economy to potential output at:
Definitions:
Accounts Receivable
The amounts owed to a business by its customers for sales made on credit, considered a current asset on the balance sheet.
Accounts Payable
Obligations of a business to settle short-term debt with creditors or suppliers.
Capital Gain/Loss
The increase (gain) or decrease (loss) in the value of an investment or property from its purchase price.
Depreciation Life
The estimated period over which a tangible asset is expected to be used in business operations, for the purpose of calculating depreciation.
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