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    Money Banking and Financial Markets Study Set 2
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    Exam 22: Understanding Business Cycle Fluctuations
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    Use the Long-Run Model from Chapter 22 to Describe the Adjustment
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Use the Long-Run Model from Chapter 22 to Describe the Adjustment

Question 17

Question 17

Essay

Use the long-run model from Chapter 22 to describe the adjustment process the economy would go through from an increase in potential output.

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The increase in potential output would s...

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