At what level of output does long run equilibrium occur

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Reference no: EM131302792

1. In a graph illustrating the AD-AS model, where does short-run equilibrium occur, and where does long-run equilibrium occur? At what level of output does long-run equilibrium occur?

2. When the economy is in a short-run equilibrium, with output greater than potential GDP what will happen to the short-run aggregate supply curve? Briefly explain why this happens.

Reference no: EM131302792

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