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Businesses have to accommodate workers and customers for their safety with personal protective gear, and social distancing, such as limiting the number of customers. Furthermore,
Businesses have to accommodate workers and customers for their safety with personal protective gear, and social distancing, such as limiting the number of customers. Furthermore, many consumers are cutting their spending due to negative news, such as temporary pay cuts and economic uncertainty soon. Assume the economy starts at the LR equilibrium use AD and AS to answer what happens to the new equilibrium price level and output in the economy. a) With the given information, what happens to the economy in the short run
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