Question: Use a dynamic aggregate demand and aggregate supply graph to illustrate the change in macroeconomic equilibrium from 2015 to 2016, assuming that the economy experiences

Use a dynamic aggregate demand and aggregate supply graph to illustrate the change in macroeconomic equilibrium from 2015 to 2016, assuming that the economy experiences deflation during 2016. In order for deflation to take place in 2016, does the economy also have to be experiencing a recession?

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