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AD 180 AS 120 AD 100 200 300 400 500 OUTPUT (Billions of dollars) the short run, the decrease in consumption spending associated with the

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AD 180 AS 120 AD 100 200 300 400 500 OUTPUT (Billions of dollars) the short run, the decrease in consumption spending associated with the Increase in saving causes the price level to the price able expected and the quantity of output to w the natural level of output. The sharp increase in saving will cause the unemployn e to w the natural rate of unemployment in the short run

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