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Aggregate Demand-Aggregate Supply Model and Long-Run ...
aggregate price level is P 1. a. Draw a graph of long-run equilibrium for Macroland depicting the AD, SRAS, and LRAS curves. Label both axes, identify Y P and P 1 on your graph. b. Suppose that Macroland experiences a negative demand shock. Graph the short-run changes in the original equilibrium that will occur because of this demand shock.
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