Suppose that a sudden increase in aggregate demand moves, Finance Basics

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Suppose that a sudden increase in aggregate demand moves

Question: Suppose that a sudden increase in aggregate demand moves the economy from its longrun equilibrium.

a. Illustrate this change using the aggregate demand-aggregate supply model.

b. What are the effects of this change in the short run and the long run?

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Finance Basics: Suppose that a sudden increase in aggregate demand moves

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Finance Basics: Suppose that a sudden increase in aggregate demand moves

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