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Suppose That Changes in Aggregate Demand Tended to Be Infrequent

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Essay

Suppose that changes in aggregate demand tended to be infrequent and that it took a long time for the economy to return to long-run output. How would this affect the arguments of those who oppose using policy to stabilize output?


Definitions:

Jefferson's Embargo

A law enacted in 1807 by President Thomas Jefferson that prohibited American ships from trading in all foreign ports, intending to protect American interests.

New England

New England is a region in the northeastern United States, comprising six states (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut), known for its colonial history and distinct seasonal weather.

American Shores

A phrase denoting the coasts of the United States, often used in discussions about immigration and exploration.

Chesapeake Affair

A significant diplomatic conflict in 1807 between the United Kingdom and the United States, arising from the British navy's attack on the American ship USS Chesapeake.

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