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It is a short run equilibrium in AD-AS model Assume that real GDP in aspacifica is currently equal to the potential level.( aspacifica is a hypothetical,small economy in the Asia-Pecific region.) Next assume that the country experiences a major slum in business investment. Using no more than 2 AD-AS(also known as ADI-SRIA) diagrams,illustrate the short run macro economic effect of the investment shock. Provide appropriate explanation using full sentence.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91603447

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