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Suppose that the economy was at its long-run equilibrium. A stock market crash happened and drove the economy into a recession. Draw an AS-AD graph

Suppose that the economy was at its long-run equilibrium. A stock market crash happened and drove the economy into a recession. Draw an AS-AD graph to show the effect of this event, state what will happen to the inflation rate, unemployment rate, and real GDP growth rate during the recession.

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In the longrun the economy will be producing at its longrun aggregate supply LRAS curve The equilibrium is established at the point of intersection of the LRAS and the aggregate demand AD The inceptio... blur-text-image

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