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Refer to the diagram below. If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be:
Short Run
A period in economics during which at least one factor of production is fixed, typically understood as a timeframe insufficient for adjusting all inputs.
Aggregate Demand
Summation of demand for all goods and services in an economy, factored at a certain price level and within a definite time span.
Unemployment
The condition where individuals who are capable of working and are actively seeking a job are unable to find employment.
Policymakers
Individuals or groups responsible for making decisions on public policy, shaping laws, regulations, and guidelines that govern the country or specific sectors.
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