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Why Are the Long-Run Effects of an Increase in Aggregate

question 81

Essay

Why are the long-run effects of an increase in aggregate demand on price and output different from the short-run effects?


Definitions:

Independent

Free from outside control; not depending on another's authority, or capable of thinking or acting for oneself.

Theory

A systematically organized set of concepts, explanations, and predictions about phenomena, serving as a framework for understanding or investigating those phenomena.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Research Outcome

The results or findings derived from conducting scientific research, which can provide insights or answer research questions.

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