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In: Economics

1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output...

1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output gaps. Depict the parallel shift of the short-run aggregate supply curve that occurs in the long run.

2) Following a reduction in consumer spending, in the long run, what is the value of real GDP in this economy?

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Expert Solution

Rahul Sunny answered 2 years ago
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