4.3 Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is a decline in wealth. Explain how the economy moves back to full employment.

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter15: Aggregate Demand And Aggregate Supply
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4.3 Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply
diagram to show what happens in both the long run and the short run when there is a decline
in wealth. Explain how the economy moves back to full employment.
4.4 Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply
diagram to show what happens in both the long run and the short run when there is an
increase in wealth. Explain how the economy moves back to full employment.
Transcribed Image Text:4.3 Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is a decline in wealth. Explain how the economy moves back to full employment. 4.4 Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is an increase in wealth. Explain how the economy moves back to full employment.
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