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Aggregate supply-aggregate demand model

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Reference no: EM133252014

Aggregate Supply (AS)/Aggregate Demand (AD) model

Please answer the following questions based upon the following information and assume that the economy starts in long run and short run equilibrium. In the late 1990s, the US experienced a technology boom. In part, the boom was due to a revolution in communication technology that resulted in a massive expansion of the internet; in part the boom was due to households and firms purchasing new equipment in anticipation of Y2K. What happens to price and output levels as a result of the expansion? (Please use graphs to support your answer)

Reference no: EM133252014

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