Draw an aggregate supply and aggregate demand graph which shows the economy producing an output which exceeds potential output in the short run, and the adjustment that will occur as the economy adjusts to long-run equilibrium.
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Q150: During an economic boom, output exceeds potential
Q151: Name a supply shock that has affected
Q152: What are supply shocks? Explain what effect
Q153: Explain why the short-run aggregate supply curve
Q154: During an economic boom
A) actual output exceeds
Q155: Adverse supply shocks can cause a recession
Q156: Aggregate demand and aggregate supply must be
Q157: In the long run, output is determined
Q158: Describe how adjustments in wages and prices
Q159: During an economic boom
A) the level of
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