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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
Expert's answer
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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