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If there is a negative demand shock, it is understood that the IS and AD curves will shift down (correct me if I'm wrong), and

If there is a negative demand shock, it is understood that the IS and AD curves will shift down (correct me if I'm wrong), and the economy will be below its potential (y bar

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cl) Briefly depict the mechanism pushing the economy back to its potential if neither monetary nor fiscal policy is used to speed up the recovery

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