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Using aggregate supply and aggregate demand analysis, discuss how the following will two events affect the aggregate level of output and the price level in the economy. Use just a SRAS curve (not the LRAS). You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level.

a. A hurricane that destroys half the supply of goods produced in Florida.

b. An increase in the money supply.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91725541

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