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Title: Based on the figure above, suppose consumer pessimism reduces aggregate demand from AD1 to AD2. If ... Post by: sgy_89 on May 25, 2017 Based on the figure above, suppose consumer pessimism reduces aggregate demand from AD1 to AD2. If the economy is allowed to correct itself, full employment will be restored in the long run when
A) the aggregate demand curve shifts back to its original position. B) falling wages and input prices shift the aggregate supply curve to the right. C) potential GDP is reduced to $3 trillion. D) wage and input contracts expire and are renegotiated upward. Title: Re: Based on the figure above, suppose consumer pessimism reduces aggregate demand from AD1 to AD2. ... Post by: folioge on May 25, 2017 Content hidden
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