Question: How could you use the aggregate demandaggregate supply (AD/AS) framework to explain the impact of a decline in investment demand on inflation and output in
How could you use the aggregate demandaggregate supply (AD/AS) framework to explain the impact of a decline in investment demand on inflation and output in the economy? You can think of the impact of a decline in investment demand as an (Click to select)aggregate demandaggregate supply shock. Such a shock would shift the (Click to select)dynamic aggregate demandshort-run aggregate supply curve to the (Click to select)rightleft. In the absence of other changes, this would put (Click to select)upwarddownward pressure on output and (Click to select)upwarddownward pressure on inflation.
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