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AS2 AS1 ASo Aggregate output Figure 8: 41. Refer to Figure: 8. The aggregate supply curve shifting from AS1 to AS2 will cause
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Answer 41: Option B is correct. The aggregate supply curve shifting from AS 1 to AS 2 will cause cost push inflation. It means that price level going up as a result of decrease in the aggregate supply

Answer 42 :Option C is correct.

Trade deficit means that export is more than import. It means that an economy has been facing export are $150 billion where as import are $100 billion .So they are facing trade deficit of $50 billion

Trade deficit=Export -Import=$150-$100=$50 billion

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