-Using the Graph Above, If Economic Policy Causes Aggregate Demand

question 52

Essay

-Using the graph above, if economic policy causes aggregate demand curve shifts from AD2 to AD1, then what will happen to the equilibrium level of output and the price level? Explain.

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Definitions:

Dishonor

Failure to fulfill an obligation, especially the non-payment of a check or negotiable instrument when it is presented for payment.

Warranties

Legally binding promises made by a manufacturer or seller that a product or service meets certain quality and reliability standards or that certain repair or replacement conditions will be met.

Unaccepted Draft

A written order to pay a specified amount that has not been agreed to or signed by the party expected to pay.

Entitled To Enforce

A legal phrase indicating that a person or entity has the right to enforce a contract or legal instrument.