There are many real world factors that cause aggregate demand and aggregate supply to shift. When an economy is operating at full employment (Qf) and experiences an economic change that impacts aggregate demand and aggregate supply then a new equilibrium occurs which causes either inflation, unemployment, neither or both.
Using the table of information below, start each # scenario at equilibrium and full employment (Qf), determine what curve shifts and which direction and the economic impact.
Complete the table below
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