Question: Problem 1: Suppose the current price level is 105, and the current level of RGDP is $17.2 trillion. Illustrate each of the following situations on

Problem 1: Suppose the current price level is 105, and the

Problem 1: Suppose the current price level is 105, and the current level of RGDP is $17.2 trillion. Illustrate each of the following situations on a graph. a. The price level rises to 110, while other variables remain constant. b. Firms become pessimistic and reduce their investment. Assume that the price level remains constant

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