Exhibit: Supply Shock P LRAS B C A SRAS SRAS, SRAS D E AD Y Suppose the economy is at point A, and there is a negative s
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Exhibit: Supply Shock P LRAS B C A SRAS SRAS, SRAS D E AD Y Suppose the economy is at point A, and there is a negative s
Exhibit: Supply Shock P LRAS B C A SRAS SRAS, SRAS D E AD Y Suppose the economy is at point A, and there is a negative supply shock that does not last forever. In this situation, point represents short-run equilibrium, and point represents long-run equilibrium E:D B: A E: A B:
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