ECONOMICS 201

Kennedy King College

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THE PHILLIPS CURVE IN THE SHORT RUN AND LONG RUN ECONOMICS ANSWER...
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13

januari 2022

2021/2022

A
The Phillips curve in the short run and long run In the year 2020, aggregate demand and aggregate supply in the fictional country of Marjan are represented by the curves and AS on the following graph. Suppose the natural rate of output in this economy is $6 trillion. On the following graph, use the green line (triangle symbol) to plot the long-run aggregate supply (LRAS) curve for this economy. Economists have forecast that if the government does nothing and the economy continues to grow at ...
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