The economy is in long run equilibrium. Congress’s passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply aggregate supply in short run?   And what happens in long run, and long run equilibrium price level and output?    Explicitly state what happens to equilibrium price level and output in both short run and long run and how economy corrects from short run to long run.

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