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Use the following graph to answer the following questions.This graph depicts an economy where aggregate demand has decreased,with no change in either short-run aggregate supply (SRAS) or long-run aggregate supply (LRAS) .
-In the graph,aggregate demand decreases,causing a decrease in the aggregate price level and real gross domestic product (GDP) ,just like during the Great Depression.If short-run aggregate supply had decreased by the same margin as aggregate demand,how would the economy have behaved differently?
Economic Reasons
Factors or considerations related to financial efficacy, efficiency, or impact that influence decisions or actions.
Borders
Geographical boundaries of political entities or legal jurisdictions, such as countries.
Technological Advances
Progressive improvements and innovations in technology that enhance efficiency, productivity, and quality of life.
Dependency on Oil
The reliance on oil as a primary source of energy or economic revenue, which can lead to vulnerabilities if there are fluctuations in oil availability or prices.
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