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Suppose that an economy is currently in a long run equilibrium where SRAS = LRAS = AD. If there is decreased security about jobs and future income, which of the following is the best description of the outcome in the economy?
A. Aggregate demand decreases. B. Long-run aggregate supply increases. C. Aggregate demand increases.
D. Short-run aggregate supply decreases.
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Suppose that an economy is currently in a long run equilibrium where SRAS = LRAS = AD. If there is d...
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