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State of equilibrium before september 11

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Reference no: EM132600575

Now suppose that the economy was in state of equilibrium before September 11, 2001:

  • The aftermath recession in the USA was a cyclical downturn or an economic shock?
  • If it was an economic shock, using an AD-AS diagram, demonstrate how the economy reached its long-run equilibrium by appropriate monetary and fiscal policy

Reference no: EM132600575

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