What is the required change in aggregate demand to bring the economy back to its long-run equilibrium?

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2026-04-05 11:40

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To bring the economy back to its long-run equilibrium, the required change in aggregate demand would need to be equal to the difference between the current level of aggregate demand and the level of aggregate demand that corresponds to the long-run equilibrium. This change would need to be sufficient to close the gap between the two levels and restore balance in the economy.

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