Suppose an economy currently is at long-run equilibrium point e, with full-employment output (y*) and price level p*. given the changes in the economy listed to the right, illustrate the region where the new short-run equilibrium would be. note that in each case, both the aggregate demand curve and the aggregate supply curve shift. depending on the direction of the shift, you may not know what happens to either the price level or real gdp. each case matches with one point.
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Suppose an economy currently is at long-run equilibrium point e, with full-employment output (y*) an...
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