The graph on the right represents initial output in the short run. Suppose real interest rates fall. Using the line drawing tool, draw a new line depicting the new aggregate demand. Label this line 'D₂'. Carefully follow the instructions above and only draw the required object. C Aggregate demand, D. Output (real income), Y D=Y D₁

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Aggregate Demand And Aggregate Supply
Section15.2: Explaining Short-run Economic Fluctuations
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The graph on the right represents initial output in the short run.
Suppose real interest rates fall. Using the line drawing tool, draw a new line
depicting the new aggregate demand. Label this line 'D₂'.
Carefully follow the instructions above and only draw the required object.
C
Aggregate demand, D
Output (real income), Y
D=Y
D₁
Transcribed Image Text:The graph on the right represents initial output in the short run. Suppose real interest rates fall. Using the line drawing tool, draw a new line depicting the new aggregate demand. Label this line 'D₂'. Carefully follow the instructions above and only draw the required object. C Aggregate demand, D Output (real income), Y D=Y D₁
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if real interest rates fall​, output in the short run will (Rise or Fall)

Aggregate demand, D
Output (real income), Y
D.
D=Y
D₁
Transcribed Image Text:Aggregate demand, D Output (real income), Y D. D=Y D₁
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