Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased,with no change in short-run aggregate supply (SRAS) .
-In the graph,we see that long-run aggregate supply decreased during the Great Recession.This was due to a decline in housing prices and the subsequent financial crisis.Why did these factors cause long-run aggregate supply to decrease?
Definitions:
Sternocostal Synchrondrosis
The cartilaginous joint where the ribs attach to the sternum.
Costochondral Joint
The cartilaginous junction where a rib attaches to the cartilage of the sternum, allowing for movement and flexibility in the rib cage.
Anterior Cruciate Ligament
A ligament in the knee that connects the femur (thigh bone) to the tibia (shin bone) and helps stabilize the knee joint.
Posterior Cruciate Ligament
A key ligament located within the knee, vital for stabilizing the joint by preventing the tibia from moving too far backward.
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