Use the Long-Run Model to Describe the Adjustment Process the Economy

question 67

Essay

Use the long-run model to describe the adjustment process the economy would go through from an increase in potential output.

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Definitions:

Vision

Vision refers to the ability to see, the act of envisioning future possibilities, or a mental image of what the future could or should be like.

Perception

The sorting out, interpretation, analysis, and integration of stimuli involving the sense organs and brain.

Sensation

The physical stimulation of the sense organs.

Stimuli

External factors or events that elicit a response from a sensory organ or organism.