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Graphical representation of Long run Average supply and demand curves

There are many factors may change AD and AS, and the equilibrium. Please evaluate the effect of the following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output. It seems the best if you draw a graph for each scenario after you describe what might happen to AD and AS.

Illustrate U.S. imposes tariffs on foreign goods to promote domestic industry. In retaliation, foreign countries impose tariffs on U.S. goods.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921933

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