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Business, 04.02.2020 10:50 majormkh10
Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. illustrate with diagrams. in each case, what are the short-run and long-run effects on the aggregate price level and aggregate output?
a. there is a decrease in households’ wealth due to a decline in the stock market.
b. the government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases.
c. there is an increase in government spending
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Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain th...
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