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Unformatted text preview: supplied at any given price, leading to a rightward shift in SRAS. #2 Positive demand shock , because this has short run effects on aggregate output, because the economy is self correcting. #3 Negative demand shock , because if policy makers a quickly they can use monetary or fiscal policy to shift the aggregate demand curve back to the right. #4 Negative supply shock , because there is a fall in aggregate output and a rise in aggregate price level that has at the same time, and it is not an easy thing to fix. #13 a. The output will decrease b. The output will increase, because spending will have increased....
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- Spring '08