What would cause (a) a steep ADI curve; (b) a gently sloping ADI curve? Compare the short-run
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What would cause (a) a steep ADI curve; (b) a gently sloping ADI curve? Compare the short-run and longrun effects of (i) a temporary adverse supply shock and (ii) a permanent supply reduction under each of (a) and (b).
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The slope of the ADI curve depends on two factors The curve will be flat if If inte...View the full answer
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