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Consider an Open Economy in Which the Aggregate Supply Curve

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Consider an open economy in which the aggregate supply curve slopes upward in the short-run.Firms in this nation do not import raw materials from abroad,but foreign residents purchase much of the nations output.What is the most likely short-run effect on this nations economy if there is a significant downturn in economic activity in other nations around the world.

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Domestic producers purchase few imported...

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