An article in the Wall Street Journal stated, Europe is entering its fifth consecutive year of growth,

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An article in the Wall Street Journal stated, “Europe is entering its fifth consecutive year of growth, supported by accommodative monetary policies, robust business and consumer confidence and improving world trade.” What components of aggregate expenditure would “robust business and consumer confidence and improving world trade” affect, and why would they cause real GDP to grow? Illustrate your answer with a 458-line diagram.

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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