SOLVED: In the accompanying diagram, the economy is in long-run macroeconomic equilibrium at point E1 when an oil shock shifts the short-run aggregate supply curve to S R A S2 a. How
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Suppose the economy is currently in long-run macroeconomic equilibrium, with actual GDP equal to potential GDP. a. Depict this situation using AD-AS, being sure to label all curves and axis. Suppose t
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