From an initial long-run equilibrium, if aggregate demand grows slower than long-run aggregate supply while the short-run aggregate supply is unchanged, then the proper fiscal policy is to increase the money supply.
An equilibrium is a state of a system wherein all forces acting at the machine is balanced. A gadget that is in equilibrium does no longer trade. The phrase has been used for exceptional concepts from distinctive fields of study. Hydrostatic equilibrium applies to liquids. There are 3 one-of-a-kind forms of equilibrium. It is also labeled as stable, unstable, and neutral. Equilibrium, in physics, the situation of a gadget while neither its state of movement nor its inner energy nation has a tendency to exchange with time.
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