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Short run and Long run Aggregate Demand.

a) Assume an initial macroeconomic equilibrium. Elucidate both the SR and LR impact of an expansionary AD shock. Use appropriate diagrams and provide a brief real world ex of this type of shock.

b) Create another diagram; once again start from an initial macroeconomic equilibrium. describe both the SR and LR impact of a contractionary AS shock on Y. Use the appropriate diagrams and provide a brief real world ex of this type of shock.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921530

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