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Answer to Question #109793 in Macroeconomics for Kalyn

Question #109793
Pessimistic about the future firms cancel plans to build new factories what happens to aggregate supply and aggregate demand include what happens to price level in real GDP
1
Expert's answer
2020-04-15T09:48:50-0400

As a result the aggregate supply decreases because less goods are produced while the aggregate demand increases as the increasing population would require more goods. The price level in real GDP will therefore increase due to low commodity sup


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