Suppose that in Year 1 the price level equals 110 and the output level equals $14 trillion
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Suppose that in Year 1 the price level equals 110 and the output level equals $14 trillion and that in Year 2 the price level equals 104 and the output level equals $13 trillion. In the AD–AS model, what shift in the aggregate demand curve or the aggregate supply curve would explain the movement in the price level and the output level that occurred from Year 1 to Year 2?
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Related Book For
Money Banking And The Financial System
ISBN: 1801
3rd Edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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