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grandymaker [24]
2 years ago
8

Refer to the figure above. if the economy is operating at full employment when its aggregate demand curve is ad2, then a further

increase in consumption and investment spending will cause: cost-push inflation, and the new equilibrium output will be more than q2 demand-pull inflation, and the new equilibrium output will be less than q2 cost-push inflation, and the new equilibrium output will be less than q2 demand-pull inflation, and the new equilibrium output will be more than q2
Business
1 answer:
solmaris [256]2 years ago
4 0
If the economy is operating at full employment when its aggregate demand curve is ad2, then a further increase in consumption and investment spending will cause, the new equilibrium output will be less than the q2 cost-push inflation, and the new equilibrium output will be more than the q2.
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