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In the Aggregate Demand-Aggregate Supply Framework, How Does an Increase

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Essay

In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?


Definitions:

Normal Faulting

A type of fault where the hanging wall slides downward; caused by tension in the crust.

Foliation

The repetitive layering in metamorphic rocks caused by the reorientation of minerals under directional pressure.

Lineation

The alignment of linear features, such as minerals or textures, within a rock that indicates a directional force or flow.

Deformed

Referring to rocks or earth materials that have been changed in shape or dimension under stress, such as during tectonic activity.

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