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SOLVED: Use the following graph to answer the questions that follow. The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased, with no change in short-run aggregate supply (SRAS).Price levelSRASLRAS2 LRASP1=P2AD. Real GDPYIn the graph, we see that long-run aggregate supply decreased during the Great Recession. This was due to a decline in housing prices and the subsequent financial crisis. Why did these factors cause long-run aggregate supply to dec
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