Draw relevant diagrams and explain: The effect of a decline in household spending on price (P) and quantity of output (Y). | Cheap Nursing Papers

Draw relevant diagrams and explain: The effect of a decline in household spending on price (P) and quantity of output (Y).

  1. Draw relevant diagrams and explain:

a. The effect of a decline in household spending on price (P) and quantity of output (Y).

b. How does the transition from short-run equilibrium to long-run equilibrium take place? 

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