Question: 1, Consider starting from full-employment equilibrium in our Aggregate Demand and Supply model (with flexible wages and worker misperception of price level changes in the

1, Consider starting from full-employment equilibrium in our Aggregate Demand and Supply model (with flexible wages and worker misperception of price level changes in the short run), at p0, QN on the output market graph below. Then we get an increase Aggregate Demand from Agg D0 to Agg D1

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