Beginning at Long-Run Equilibrium, (I)use the Basic (Static)aggregate Demand and Aggregate

question 39

Essay

Beginning at long-run equilibrium, (i)use the basic (static)aggregate demand and aggregate supply model to illustrate what happens in the short run when the economy suffers a supply shock, and (ii)use the basic (static)aggregate supply and demand model to illustrate what happens in the long run following this supply shock.
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Definitions:

Pheromones

Chemical signals released by an organism that influence the behavior or physiological response of other individuals of the same species.

Genetic Resistance

The ability of an organism to withstand or evade harmful environmental factors, pathogens, or pests through genetic traits.

Hormone

Chemical substances produced in the body that regulate and control the activity of certain cells or organs, essential for every function of the body.

Bloodstream

The system of blood vessels (arteries, veins, and capillaries) through which blood flows within an organism, delivering oxygen and nutrients to tissues and removing waste products.