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QUESTION 2 For each of the following events, explain the short-run and long-run effects on output and the price level using the AD-AS diagram. a.

QUESTION 2

For each of the following events, explain the short-run and long-run effects on output and the price level using the AD-AS diagram.

a. The stock market declines sharply, reducing consumers' wealth.

b. A technological improvement raises productivity.

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