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In the Classical Model, a Rightward Shift in the Aggregate

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In the classical model, a rightward shift in the aggregate demand curve will, in the long run,


Definitions:

Particular Purpose

Refers to a specific reason or intention for which something is used, often implicating that the product or service is suitable for that intended use.

Merchant

Under the UCC, a person who regularly sells goods as his or her business or trade or employs people to sell those goods; anyone who works for a person selling those goods; or anyone who holds himself or herself out as a “merchant” or a “dealer.”

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, aimed at harmonizing the law of sales and other commercial transactions across all 50 states.

Substitute Goods

Products or services that can be used in place of each other, where an increase in price for one leads to an increase in demand for the other.

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