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Refer to the graph below. The economy is initially at equilibrium when AD1 and AS1 intersect. If there is cost-push inflation in the economy so that aggregate supply shifts from AS1 to AS2, then to reduce unemployment the government may increase aggregate demand which in the short run shifts:
Surface
The outward or visible aspect of something, sometimes contrasted with deeper, more hidden dimensions.
Positive Disposition
A tendency to maintain a positive outlook and approach situations with a constructive attitude.
Critical Thinking
The method of impartially examining and assessing a matter to reach a decision.
Skilled and Eager
Describes someone who possesses the necessary abilities or proficiency and shows a keen enthusiasm or readiness to undertake tasks.
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