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8Chp22-Econ3310 - Aggregate Supply Equilibrium Analysis...

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Unformatted text preview: Aggregate Supply Equilibrium Analysis Other Demand shocks: An increase in spending from any of the components C , I , G , NX , will also shift AD to the right Monetary policy shocks: An increase in the money supply shifts AD to the right because it lowers interest rates and stimulates investment spending Factors that Shift Aggregate Demand Aggregate Demand ...
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