During periods of real shocks,the long-run aggregate supply curve will remain the same in the short term and the long run.

Question

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During periods of real shocks, the long-run aggregate supply curve will shift in the short run and then adjust to a new position in the long run. This is because real shocks affect the economy's potential output, leading to a shift in the production possibilities frontier, which in turn affects the long-run aggregate supply curve.

During Periods of Real Shocks,the Long-Run Aggregate Supply Curve Will