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The advent of interest-earning checking accounts in the early 1980s led many households to keep a larger proportion of their wealth in checking accounts. Use the aggregate demand-aggregate supply model to illustrate graphically the impact in the short run and the long run of this change in money demand. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curves shift; v. the short-run equilibrium values; and vi. the long-run equilibrium values. State in words what happens to prices and output in the short run and the long run.
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Engaging in the act of viewing content, such as television or videos, with no particular goal beyond entertainment or passing time.
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Methodical and organized in approach, often used to describe procedures that follow a fixed plan or system.
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The capacity to recover quickly from difficulties; toughness.
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