(Solution) - Some events change aggregate demand from AD0 to AD1 Describe -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Some events change aggregate demand from AD0 to AD1 Describe two events that could have created this change in aggregate demand. What is the equilibrium after aggregate demand changed? If potential GDP is $1,000 billion, the economy is at what the type of macroeconomic equilibrium?

Initially, the short-run aggregate supply curve is SAS0 and the aggregate demand curve is AD0.