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Explain How the Static Aggregate Demand and Aggregate Supply Model

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Essay

Explain how the static aggregate demand and aggregate supply model gives us misleading results about the price level,particularly with respect to decreases in aggregate demand.Describe how the aggregate demand curve is different in the dynamic model as compared to the static model.Describe how potential GDP is different in the dynamic model as compared to the static model.


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A network of banks chartered by the federal government in the United States, established to create a stable, national currency and improve the government's control over the economy.

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