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Figure: Determining Long Run and Short Run Economic Shifts
-(Figure: Determining Long Run and Short Run Economic Shifts)Starting at point j,the economy will move to point ____ in the short run if policymakers successfully reduce aggregate demand.

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Figure: Determining Long Run and Short Run Economic Shifts 
-(Figure: Determining Long Run and Short Run Economic Shifts)Starting at point j,the economy will move to point ____ in the short run if policymakers successfully reduce aggregate demand.

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In the short run, a successful reduction in aggregate demand will typically lead to a decrease in output and price level, moving the economy from point j to point m, which represents lower output and price level.

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