Question: After a monetary shock hits aggregate demand, which curve will shift to bring output growth back to the Solow growth rate: the short-run aggregate supply

After a monetary shock hits aggregate demand, which curve will shift to bring output growth back to the Solow growth rate: the short-run aggregate supply curve or the aggregate demand curve? (Which curve is more like a micro- economic story about prices adjusting in order to bring supply and demand into balance?)

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Shortrun aggregate supply will eventually shift The SRAS curve represents ... View full answer

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