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Suppose That Changes in Aggregate Demand Tended to Be Infrequent

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Essay

Suppose that changes in aggregate demand tended to be infrequent and that it takes a long time for the economy to return to long-run output. How would this affect the arguments of those who oppose using policy to stabilize output?


Definitions:

Office Supplies

Office supplies refer to various items and equipment used in offices or for professional purposes, such as stationery, computers, and furniture.

Expenses

Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.

Assets

Resources owned by a business or individual, which have economic value and can be used to meet debts or commitments.

Interest Revenue

Income earned from lending money or through investing in interest-bearing assets.

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