Demonstrate graphically how the following are represented in the globalized AS/AD model for the United States. What
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Demonstrate graphically how the following are represented in the globalized AS/AD model for the United States. What happens to the trade deficit in each?
a. Foreign wages rise.
b. U.S. productivity rises.
c. The value of the dollar rises.
d. The U.S. imposes tariffs on imported goods.
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a The WAS curve shifts up shown in the graph as rise in the WA...View the full answer
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