Question: ) Draw ( in the AD / AS model ) and explain what happens to the Lonely Mountain economy on its own in the long

) Draw (in the AD/AS model) and explain what
happens to the Lonely Mountain economy on its
own in the long run as a result of a) if no policy
response occurs. What happens to the price
level, unemployment and real GDP in the long
run? Include all the dynamics. Is this inflation?
Explain why or why not. If so, what is it called?

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