Assume that the economy is originally in longrun equilibrium and that there is a drop in demand. Use graphs to explain how and why the economy initially moves to a short- run equilibrium with...


Assume that the economy is originally in longrun equilibrium and that there is a drop in demand. Use graphs to explain how and why the economy initially moves to a short- run equilibrium with unemployment. How does the economy return to long- run equilibrium?



May 26, 2022
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