6 Factors such as unfavorable weather conditions, a decline in capital assets, a decline in the average
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6 Factors such as unfavorable weather conditions, a decline in capital assets, a decline in the average skill (or educational) level of the labor force, higher prices for imported goods, and falling prices for exported goods will cause a decline in aggregate supply. A decrease in aggregate supply will cause real output to fall. It will also lead to inflation, unless it is accompanied by a reduction in aggregate demand.
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Related Book For 
Essentials Of Economics
ISBN: 396414
2nd Edition
Authors: James D Gwartney; Richard Stroup; J R Clark
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