Macro Chapter 18/19
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What do the distinctions between short-run aggregate supply and long-run aggregate supply have in common with the distinction between the short-run Phillips Curve and the long-run Phillips Curve?
In the short run, aggregate demand plays a dominant role while in the long run aggregate supply plays a larger role in determining the outcome.
According to mainstream economists, what is the usual cause of macroeconomic instability?
aggregate spending and its components
According to mainstream economists, adverse aggregate supply factors can cause instability by what?
simultaneously causing cost-push inflation and recession
