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Starting from Long-Run Equilibrium,use the Basic Aggregate Demand and Aggregate

question 157

Essay

Starting from long-run equilibrium,use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is an increase in wealth.


Definitions:

Aromatic

A class of cyclic, planar compounds with electrons delocalized over the entire structure, providing unique stability, examples include benzene.

Marginal Probability

The probability of an event occurring, marginalizing over the possibilities of any other related events.

Likelihood

The probability of a set of observations given a particular statistical model.

Joint Probability

The likelihood of two or more events occurring simultaneously given the intersection of the events.

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