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Sras lras - PowerPoint PPT Presentation

Hayek Classical Model

Hayek Classical Model. The easier way to view the world. The classical model. PRICE LEVEL. LRAS. SRAS. P. AT this point there is zero unemployment. AD. REAL OUTPUT. YF. An Increase in Long-run Aggregate supply. SRAS. LRAS. LRAS1. PRICE LEVEL. SRAS1. P. P1. AD. REAL OUTPUT.

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Hayek Classical Model