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The table shows the aggregate demand and short-run aggregate supply schedules of Chamber Island in which potential GDP is $510 billion. Exports decrease unexpectedly,
The table shows the aggregate demand and short-run aggregate supply schedules of Chamber Island in which potential GDP is $510 billion. Exports decrease unexpectedly, shifting aggregate demand by $40 billion at all price levels. As a result, the price level will be Chamber Island has experienced A. a one-time change in the price level B. a demand-pull deflation OC. a cost-push deflation OD. a demand-pull inflation OE. a cost-push inflation Real GDP 88881 Real GDP supplied Price demanded in the short run level (billions of 2007 dollars per year) 550 470 100 530 490 110 510 510 120 490 530 130 470 550 Time Remaining: 00:23:15 Next
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