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Initially, the short-run aggregate supply curve is 0 and the aggregate demand is 0. Some events change the aggregate demand from 0 to 1 a)Describe
Initially, the short-run aggregate supply curve is 0 and the aggregate demand is 0. Some events change the aggregate demand from 0 to 1
a)Describe two events that may have caused this change in supply added. ii. What is the equilibrium after the aggregate supply is modified? At a potential GDP of $ 1 trillion, does the economy have a gap inflationary, a recessive gap or no output gap?
B) Some events change the aggregate demand from 0 to 1, and the aggregate supply from 0 to 1. What is the new macroeconomic equilibrium?
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