Question: 2. Using short/medium run Aggregate Supply and Aggregate Demand curves, show how the following policies can be expected to affect the price level and real

2. Using short/medium run Aggregate Supply and Aggregate Demand curves, show how the following policies can be expected to affect the price level and real income (or real output).

a. an increase in the Federal Government Budget Deficit.

b. an increase in oil prices.

c. an increase in the productivity of workers

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