The following events have occurred in the history of the United States: A deep recession hits the world economy. The world oil price rises sharply. S. businesses expect future profits to fall. Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.
The following events have occurred in the history of the United States: A deep recession hits the world economy. The world oil price rises sharply. S. businesses expect future profits to fall. Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 19E
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The following events have occurred in the history of the United States:
- A deep recession hits the world economy.
- The world oil
price rises sharply. - S. businesses expect future profits to fall.
- Explain for each event whether it changes short-run
aggregate supply , long-run aggregate supply, aggregate demand, or some combination of them.
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