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 A move by the economy from Z to P3 and Y1 would be consistent with LRAS SRAS P3 P 2 P AD, AD AD 0 Y, O inflation

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 A move by the economy from Z to P3 and Y1 would be consistent with LRAS SRAS P3 P 2 P AD, AD AD 0 Y, O inflation. stagflation. expansion. depreciation. O