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In the Aggregate Supply and Demand graph below, an increase in Short-Run Aggregate Supply moves the economy out of equilibrium, and then Aggregate Demand falls
In the Aggregate Supply and Demand graph below, an increase in Short-Run Aggregate Supply moves the economy out of equilibrium, and then Aggregate Demand falls (not shown on the graph) to stabilize it
Please click on the point where the economy ends up in thelong-run
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