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Running head: MICROECONOMICS GRAPHMicroeconomics GraphStudent NameInstitution Affiliation1MICROECONOMICS PAPER2A recession is a portion of time that there is economic slump. A shift from D to C willsee a change of equilibrium between SAS and AD as it is at C that LAS intersects, but amovement from C to F leads to the major economic crisis brought by the uncontrolled or outof hand recession effect. At this point, the prices of the asset have decreased, and this willeventually lead to a decrease in the real wages of the workers or unemployment for thebusinesses will strive to remain afloat. Recession leads to complications such as changes inprices of assets and adjustments in the labor prices in the long run.E to D: Due to the recession, the asset prices are bid down by both the firms andworkers, in the long run, the SASD will not be able to shift to SASE due to the lo ...


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