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Show the Short-Run Impact of the Following Factors on GDP

Question 172

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Show the short-run impact of the following factors on GDP using a graph of the aggregate goods and services market. Assume the economy was originally in long-run equilibrium.
a.a stock market crash
b.a decrease in the real interest rate
c.a flood that destroys most agricultural crops
d.a decrease in resource prices
e.an increase in the labor force
f.an increase in the expected inflation rate

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a.The stock market crash would decrease ...

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