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Other things equal, what effects would each of the following have on aggregate demand and aggregate supply?
Other things equal, what effects would each of the following have on aggregate demand and aggregate supply? In each case explain the effect on equilibrium price level and level of real output.
a) A significant reduction in the value of the stock market.
b) A sizable depreciation in the international value of the dollar .
c) A major war breaks out in the Middle East raising oil prices.