For each of the following scenarios, state the short run effect on the AD curve. a. There

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For each of the following scenarios, state the short run effect on the AD curve.
a. There is an increase in government purchases.
b. Costs of production increase.
c. Investors become more pessimistic.
d. The central bank becomes less tolerant of deviations from the target inflation rate.
e. The price level increases.
f. The target inflation rate increases.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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