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In the Long-Run the aggregate price level has NO effect on the quantity of aggregate output supplied.
The Long-Run Aggregate Supply Curve shows the relationship between the aggregate supply level and the quantity of aggregate output supplied that would exist if all prices, including nominal wages, were fully flexible.
Inflation and deflation have the same effect as someone changing all prices by the same proportion. As a result
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- Mapa Mental sobre Enter text here, creado por Daniel Mendez el 23/04/2018.
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- Daniel Mendez
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