Why are long-run effects of increase in aggregate demand

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1. What is the relationship among AD, SRAS, and LRAS, as explained in the text, when the economy is into Long Run equilibrium? Explain!

2. Why and how might a Supply Shock (OPEC oil embargo) lead the US into Stagflation?

3. Why are Long-Run effects of an increase in aggregate demand on price and output, different from Short-Run effects

Reference no: EM131173907

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