a. If the
above graph is a depiction of the state of the economy as it is
now, what would have to
happen for there to be stagflation?
What does the Potential GDP curve represent and what is its
relationship to the price level?
Explain why it is possible for production to be greater than
Give three reasons that the AD curve slopes downward.
Give three theories as to why the Short Run Aggregate Supply curve
Give one reason for each curve, that would cause the curve to
Section Two-Part Two (Econl2)