Question: Using the AD-SAS-LAS framework, show the short run and long run effects of a simultaneous decrease in investment expenditures (demand)and an increase in technology (supply).

Using the AD-SAS-LAS framework, show the short run and long run effects of a simultaneous decrease in investment expenditures (demand)and an increase in technology (supply). Assume that the size of the demand effect is greater than the size of the supply effect. (10 marks).

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