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9. Starting at a long-run equilibrium, illustrate on an AD-AS graph how a demand shock can create an output gap, then the SRAS will self-correct
9. Starting at a long-run equilibrium, illustrate on an AD-AS graph how a demand shock can create an output gap, then the SRAS will self-correct back to a new long-run equilibrium. Identify the gap created by the event. The event: In the private sector, there is a decline in households' wealth due to a decline in the stock market
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
6th edition
132831007, 978-0132831000
