Using the Aggregate Supply and Demand Model,illustrate What Happens in the Long

question 36

Essay

Using the aggregate supply and demand model,illustrate what happens in the long run when the economy suffers a supply shock.Begin your analysis by assuming the economy has suffered the supply shock in the short run,but has not yet adjusted to it in the long run.

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Definitions:

Legitimate Power

This refers to the authority someone has due to their position or role within a formal organizational setting.

Accumulate

To gather or pile up something gradually as time passes, often leading to a large quantity.

Exert Influence

The act of using one's power, authority, or personal appeal to affect or change someone's beliefs, attitudes, or actions.

Situational Control

The extent to which individuals can influence or manipulate the conditions or environment of a given situation to achieve desired outcomes.