Using the AD-LRAS model, suppose both aggregate demand and longrun aggregate supply shift left. What...
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Economics
Using the AD-LRAS model, suppose both aggregate demand and longrun aggregate supply shift left. What impact does this have onpotential GDP and the price level in the long run? Potential GDPfalls, and changes to the price level are indeterminate in the longrun. Potential GDP rises, and the price level rises in the long ronPotential GDP rises, and changes to the price level areindeterminate in the long run. Potential GDP falls, and the pricelevel rises in the long run. Potentlat COP fath, and the pricefevel fally in the lone non.
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