No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

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How do you graph an economy in recession?

Posted on April 16, 2014 at 11:30 AM

To graph an economy experiencing a recession in the short run, the short-run aggregate supply curve and aggregate demand curve should intersect to the left of the long-run aggregate supply curve (full-employment level of output).

This No Bull Review diagram shows how to graph an economy in recession using the AD/AS model.

AP Macroeconomic Unit 3 AD/AS & Fiscal Policy

Categories: AP Macroeconomics, Macro Unit 3 AD/AS and Fiscal Policy

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