Bryannadesanno506 Bryannadesanno506

24-01-2024
Social Studies

contestada

Suppose the AD-AS (Aggregate Demand-Aggregate Supply) model is initially in long-run equilibrium. Then there is an increase in wealth. In the short run:
a. Aggregate demand increases, causing inflation
b. Aggregate supply increases, causing deflation
c. Equilibrium remains unchanged
d. Aggregate demand and supply both decrease

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