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Please answer correct explain plz asap plz both are questions Don't answer by pen paper plz Assume the economy is in macroeconomic equilibrium. In the
Please answer correct explain plz asap plz both are questions
Don't answer by pen paper plz
Assume the economy is in macroeconomic equilibrium. In the short run, an increase in aggregate demand whereas in the long run, an automatic mechan decreases actual real GDP, making it less than potential GDP increases the potential GDP level and the overall price level increases the price level and actual GDP beyond potential GDPAssume the economy is in macroeconomic equilibrium. In the short run, an increase in aggregate demand whereas in the long run, an automatic mechanism brings the economy back to the initial price level but lowers GDP below potential GDP the economy to a point where both the price level and the real GDP fall the economy back to potential GDP but the price level remains higherStep by Step Solution
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