Question:
How can a Shift in the AS [With a Macroeconomic Equilibrium Diagram] to the Right affect all 4 Macroeconomic Performance Positively? -Is the Opposite True?
Author: eric_galvaoAnswer:
-If the AS increases from SRAS to SRAS1 then: -The Economy will Grow to the New Output [Y1] -The new Output means more Employment [Derived Demand] -Prices also will Fall so Inflation becomes Lower -Economy becomes more Competitive [From Prices falling] so Exports can Increase -The Opposite is True. SRAS going Left will Worsen all 4
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