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Use the model of the aggregate economy in the short run and MATCH each of the following events with its effect on the aggregate economy!
Use the model of the aggregate economy in the short run and MATCH each of the following events with its effect on the aggregate economy! Digital technology is introduced in the manufacturing sector Choose... Foreign product price levels increase Choose... Aggregate demand increases (AD shifts to the right) Due to wildfires part of the rainforest is Aggregate demand decreases (AD shifts to the right) devastated (rainforest is considered a Aggregate demand decreases (AD shifts to the left) natural resource) Aggregate supply decreases (AS shifts to the right) The general income level of people Aggregate supply increases (AS shifts to the left) decreases Aggregate supply decreases (AS shifts to the left) Aggregate demand increases (AD shifts to the left) Aggregate supply increases (AS shifts to the right)
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