Question: Section 3 (20p 2) Suppose that technological improvement raises productivity. a. What are the implications of this technological improvement in the economy? Use the AS-

 Section 3 (20p 2) Suppose that technological improvement raises productivity. a.

Section 3 (20p 2) Suppose that technological improvement raises productivity. a. What are the implications of this technological improvement in the economy? Use the AS- AD model to depict the impact of this event on the economy. b. How can the government use monetary policy to return the economy to equilibrium? Graph your answer. c. Describe the algorithm that motivated your answer in part (b). Verdana 11pt BIU A E &

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