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Long run self-adjustment in the AD-AS model

AP.MACRO: MOD‑2 (EU), MOD‑2.I (LO), MOD‑2.I.1 (EK), MOD‑2.I.2 (EK)


The economy of Maxistan experienced a positive aggregate demand (AD) shock due to unbridled consumer optimism.
What will be the effect of this AD shock on Maxistan’s level of output and unemployment rate in the long run?
Choose 1 answer:
Choose 1 answer: