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:

Financial Success

The achievement of financial goals and stability, often measured by profit, revenue growth, and financial health.

Motivating

The process of encouraging individuals to take action towards achieving personal or organizational goals.

Serial Entrepreneurs

Entrepreneurs who repeatedly start new businesses and ventures, moving from one interest or opportunity to another over time.

Classic Entrepreneurs

are individuals who start a business motivated by the opportunity to create new products or services, typically taking significant risks in the hope of financial gains.