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Draw an AD-AS diagram representing the U.S. economy in a recession. Also draw a diagram of the U.S. labor market in the recession. Illustrate on the diagrams and describe how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940749

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