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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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