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1. Use the model of aggregate demand and aggregate supply (short run) to explain how each...

1. Use the model of aggregate demand and aggregate supply (short run) to explain how each of the following would affect real GDP and the price level in the short run. Include graphs in your answers.
a. A decrease in government purchases
b. A major improvement in technology
c. A reduction in imports
d. An increase in price

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Expert Solution

Rahul Sunny answered 2 years ago
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