Explain the movement in the price level and the output level

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Suppose that in Year 1 the price level equals 110 and the output level equals $14 trillion and that in Year 2 the price level equals 104 and the output level equals $13 trillion.

In the AD-AS model, what shift in the aggregate demand curve or the aggregate supply curve would explain the movement in the price level and the output level that occurred from Year 1 to Year 2?

Reference no: EM131302784

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