An economy is in long-run macroeconomic equilibrium when


An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap-inflationary or recessionary-will the economy face after the shock, and what type of fiscal policies would help move the economy back to potential output?

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Macroeconomics: An economy is in long-run macroeconomic equilibrium when
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