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Using the AD-AS model, demonstrate which curves shift and how the equilibrium price level and Real GDP are affected by each of the scenarios in
Using the AD-AS model, demonstrate which curves shift and how the equilibrium price level and Real GDP are affected by each of the scenarios in both the short-run and the long-run (You can select individual curves and then copy and paste them into the graph.) HINT: Make a separate graph for the short-run and long-run. Assume that the scenario describes a situation that is unanticipated. Explain your reasoning fully. During the past decade, U.S. house prices skyrocketed far faster than expected. Show and explain the effect of an increase in house prices across the country, other things constant. Price LRAS SRAS1 P100 AD1 YF Real GDP
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