In the long run, it is the adjustment of expectations that shifts the short-run aggregate-supply curve that ensures the economy will reach equilibrium at the intersection of the aggregate-demand curve and the long-run aggregate-supply curve.
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Q1: In the long run, the shift in
Q2: The new classical misperceptions theory, based on
Q3: While the short-run aggregate curve is vertical,
Q5: The short-run aggregate curve's shape is affected
Q7: Investment spending averages about two-thirds of GDP,
Q8: The aggregate-demand curve slopes downward because when
Q9: The position of the long-run aggregate-supply curve
Q11: The business cycle follows a regular and
Q15: The aggregate-demand curve is downward-sloping because of
Q16: The new Keynesian sticky-price theory suggests that
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