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Title: Based on the figure above, suppose an increase in aggregate wealth shifts aggregate demand from AD1 ... Post by: sgy_89 on May 25, 2017 Based on the figure above, suppose an increase in aggregate wealth shifts aggregate demand from AD1 toAD2, and moves the economy beyond potential. If the economy is left to correct itself, full employment will be restored in the long run when
A) wages and input prices fall, and shift the aggregate supply curve downward. B) aggregate demand decreases back to its original level. C) contracts expire and workers and input suppliers demand higher wages and input prices, respectively. D) potential GDP expands to $6 trillion. Title: Re: Based on the figure above, suppose an increase in aggregate wealth shifts aggregate demand from ... Post by: folioge on May 25, 2017 Content hidden
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