under a free market in which the self-adjusting mechanism operates efficiently aggregate demand shocks generate real effects in the short and long run, why is this false
True or false & explain: Under a free market, in which the self-adjusting mechanism operates efficiently, aggregate demand shocks generate real effects in the short-and long-run.
True or false & explain: Under a free market, in which the self-adjusting mechanism operates efficiently, aggregate demand shocks generate real effects in the short-and long-run.
1. What is price effect. Prove that price effect is the summations of income effect and substitution effect with the help of I.C theory in inferior goods case.
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