Solved: Explain how the economy can adjust in the long run to, Macroeconomics

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Explain how the economy can adjust in the long run to

1. Explain and draw a graph to illustrate how a rise in consumer confidence can change real GDP and the price level in the short run.

2. Explain how the economy can adjust in the long run to restore full-employment equilibrium. Draw a graph to illustrate this adjustment process.

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Macroeconomics: Explain how the economy can adjust in the long run to

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Macroeconomics: Explain how the economy can adjust in the long run to

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