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The figure above depicts U.S. real GDP (the red line) and the long-run trend in GDP that prevailed before the Great Recession (the dotted blue
The figure above depicts U.S. real GDP (the red line) and the long-run trend in GDP that prevailed before the Great Recession (the dotted blue line). After the Great Recession, there does not appear to be any tendency for real GDP to return to the long-run trend line. This situation is most consistent with a -in aggregate -. demandpermanent increasepermanent decrease supply temporary decrease
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