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Use the AD-AS model based on the misperception theory to analyze the general equilibrium effects of...

Use the AD-AS model based on the misperception theory to analyze the general equilibrium effects of an increase in consumer optimism on output and the price level. Describe how the economy is affected in the short run before prices adjust and describe its evolution after prices adjust. Use a graph to illustrate your answer.

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Rahul Sunny answered 2 years ago
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