AD-SRAS Equilibrium and Policy Shift
An economy’s aggregate demand (AD) is given by the equation $$Y = 5000 - 50*P$$, and its short-run aggregate supply (SRAS) is given by $$Y = 100*P$$. If a policy action shifts the AD curve rightward by 500 units, what is the approximate percentage change in equilibrium output?
A
Approximately a 10% increase
B
No change in output
C
Approximately a 5% increase
D
Approximately a 15% increase
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