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Suppose businesses decrease their spending on new physicalcapital this year. What impact does this have...

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Economics

Suppose businesses decrease their spending on new physicalcapital this year. What impact does this have on the AD-LRAS modelthis year? Aggregate demand shifts left, and long run aggregatesupply shifts left. Aeerepate demand shifts left, and long runaperegate supply remains unchanged. Aggregate demand remainsunchanged, and long run aggregate supply shifts right. Aporegatedemand shifts right, and long run aggregate supply remainsunchanged. Aggregate demand remains unchanged, and long runaggregate supply shifts left.

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