Answer the Following Questions Using an Aggregate Demand-Aggregate Supply Model

question 165

Essay

Answer the following questions using an aggregate demand-aggregate supply model.
a.Represent an economy at long-run equilibrium.
b.Show what happens when aggregate demand increases.
c.Is this economy in an expansion or recession now?
d.What type of fiscal policy would you suggest be taken by Congress?
e.What will this policy do to your aggregate demand-aggregate supply model?

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Definitions:

Intrinsic Value

The actual, fundamental value of an asset based on an understanding of its true characteristics, including all aspects of the business, in terms of both tangible and intangible factors.