Question
Suppose that the economy starts at the natural level of output. Now suppose there is an increase in productivity due to a breakthrough in artificial
Suppose that the economy starts at the natural level of output. Now suppose there
is an increase in productivity due to a breakthrough in artificial intelligence. Using an
AD-AS diagram, show what happens to output and the price level in the short run
and the long run. What happens to the unemployment rate in the short run and the
long run?
If the economy is at its natural level of output, and then there is an increase in productivity ( example due to new technology), using an AD_AS diagram, what are the effects on output and price in short and long run. also what happens to unemployment in both too
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