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Explain how the static aggregate demand and aggregate

1. Explain how the static aggregate demand and aggregate supply model gives us misleading results about the price level, particularly with respect to decreases in aggregate demand.

2. Describe how the aggregate demand curve is different in the dynamic model as compared to the static model, and describe how potential GDP is different in the dynamic model as compared to the static model.

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Business Economics: Explain how the static aggregate demand and aggregate

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