Why does the effect of a given increase in aggregate demand have a larger effect on real

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Why does the effect of a given increase in aggregate demand have a larger effect on real output in the short run, the more excess capacity exists in the economy?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Question Posted: Feb 07, 2013 05:51 AM

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Why does the effect of a given increase in aggregate demand have a larger effect on real

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The more excess capacity there is in the economy the flatter ...View the full answer

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