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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. Aggregate demand remains unchanged, and longrun acgregate supply shifts right. Aggregate demand remainsunchanged, and long run agregate supply shifts left.

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