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Begin your graph at AD-SAS-LAS equilibrium and answer the 2 questions: What initially happens to price and output in the Short-run according to the scenario?
- Begin your graph at AD-SAS-LAS equilibrium and answer the 2 questions:
- What initially happens to price and output in the Short-run according to the scenario? Apply the changes to AD, SAS, LAS (if any) and label recessionary gap or inflationary gap on your graph.
- What could happen in the long run if the economy is allowed to adjust back to its nature rate (allowed to self-correct without government intervention)? Show the changes on your graph and indicate price, output level and new LR equilibrium.
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International Marketing
Authors: Philip Cateora
16th Edition
0073529974, 9780073529974
