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Applying the AD-AS model to a growing economy Consider a fictional economy of Baden. The following graphs show aggregate supply and aggregate demand curves for

Applying the AD-AS model to a growing economy

Consider a fictional economy of Baden. The following graphs show aggregate supply and aggregate demand curves for two years?1990 and 2004?in which the economy of Baden experienced growth.

Refer to the following graphs to answer the questions that follow.

image text in transcribed
1990 2004 AS AS 1 AD 1 PRICE LEVEL PRICE LEVEL AD REAL GDP REAL GDP d on these graphs, fluctuations in the growth rate of the econo of Baden riations in the rate at whi

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