Consider Figure 11-10. Suppose that the real interest rate suddenly declines for reasons that have nothing to

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Consider Figure 11-10. Suppose that the real interest rate suddenly declines for reasons that have nothing to do with the value of the price level. What happens to the nation's aggregate demand curve? In the short run, will the nation experience an inflationary gap or a recessionary gap? Explain.
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Economics Today The Macro View

ISBN: 9780134478760

19th Edition

Authors: Roger LeRoy Miller

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