Ie 8-2 as/ad model – suppose this economy was initially at full employment, but then experienced two large left shifts of ad. if the price level declines to $1.90, then real production gdp will have fallen to $4000 b and people will have lost their jobs. in the business cycle the economy will have moved from point "x" to point ..

10 million people. Point "t".

Explanation:

This analysis can simply be referred to as a severe recession which is also known as depression. It is defined as a condition whereby Gross Domestic Product is down by approximately 10% and there is about three to four years recession. Based on the above definition and the analysis given in the question, the situation is similar to a depression. Thus, the number of people that would have lost their jobs is 10 million and there is an adjustment from the "x" to "t".