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Homework answers / question archive / Price Level LRAS (GDP Deflator 2005 = 100) SRAS SRAS 8 AD AD 0 Real GOP (2005 Billions USD) Suppose the economy is initially at point C
Price Level LRAS (GDP Deflator 2005 = 100) SRAS SRAS 8 AD AD 0 Real GOP (2005 Billions USD) Suppose the economy is initially at point C. If there is a decrease in aggregate demand, what is the final economy's equilibrium point in the long. run?
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