UC知道宏观经济的问题（英文）3
来源：百度知道 编辑：UC知道 时间：2024/09/20 07:38:23
我要的答案，不是翻译
5. The late 1990s in the US were characterized by substantial economic growth with low inflation; that is, real GDP increased with little, if any, increase in the aggregate price level. Explain this experience using aggregate demand and aggregate supply curves. Illustrate with a diagram and a written explanation that demonstrates that you understand the economics behind the graph.
5. The late 1990s in the US were characterized by substantial economic growth with low inflation; that is, real GDP increased with little, if any, increase in the aggregate price level. Explain this experience using aggregate demand and aggregate supply curves. Illustrate with a diagram and a written explanation that demonstrates that you understand the economics behind the graph.
Because of the increase in the overall productivity in the economy, the long term aggregate supply curve shift to the right, which indicates the increasing long term productivity. Therefore,both aggregate demand and aggregate supply can increase to a new equilibrium to the right instead of moving up the old long-run aggregate supply curve(old potential GDP). Since AD and AS increase without the cost of raising price level, there's little inflation occured.