The economy is in long run equilibrium. Congress's passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply and long run aggregate supply in short run? Explain what happens to short run equilibrium price level and output. And what happens in long run, and long run equilibrium price level and output? Explain your answer using aggregate demand and aggregate supply. Format BIU

The economy is in long run equilibrium. Congress's passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply and long run aggregate supply in short run? Explain what happens to short run equilibrium price level and output. And what happens in long run, and long run equilibrium price level and output? Explain your answer using aggregate demand and aggregate supply. Format BIU

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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