Question: Part I Use an aggregate supply and demand chart to show the effect on GDP and CPI of each headline 1 . Government increases spending

Part I Use an aggregate supply and demand chart to show

Part I Use an aggregate supply and demand chart to show the effect on GDP and CPI of each headline 1 . Government increases spending Price level AS Equilibrium Price level AD2 AD1 Output (GDP) Equilibrium output . New oils fields are discovered in Texas Price level AS1 AS2 Equilibrium Price level AD1 Output (GDP) Equilibrium output 3. New technology increases productivity

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