Tutorial Sheet 4.macro.2017
Tutorial Sheet 4.macro.2017
TUTORIAL SHEET #4
1. Given the curves in the graph below, discuss why the equilibrium price level will be at
Pe and not at P1 or P2 ?
AS
P2
Pe
P1
AD
3. Why does the Short run Aggregate Supply curve slope upwards?
5. Suppose that Aggregate Supply decreases while Aggregate Demand is held constant