While there are often multiple components in any shock, which would have the biggest initial effect Aggregate Demand/Long Run Aggregate Supply/Short Run Aggregate Supply, and in which direction? during a recession, shutdown factories fall into decay and become unusable O AD: increase O AS: decrease AD; decrease AS; increase

While there are often multiple components in any shock, which would have the biggest initial effect Aggregate Demand/Long Run Aggregate Supply/Short Run Aggregate Supply, and in which direction? during a recession, shutdown factories fall into decay and become unusable O AD: increase O AS: decrease AD; decrease AS; increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Illustrate and interpretthe short-run and longrun effects of temporary and permanentsupply shocks
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