Economy in long-run macroeconomic equilibrium

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Draw a correctly labeled aggregate demand and aggregate supply graph illustrating an economy in long-run macroeconomic equilibrium.

a. Adjust your model to show a positive demand shock

b. Based on your model after completing part A, is the economy experiencing: inflation, deflation, or no change in the price level?

c. Based on your model after completing part A, is the economy experiencing economic growth?

d. Based on your model after completing part A, describe what is occurring to the economy's unemployment rate

Reference no: EM131083643

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