Question: Using aggregate supply and aggregate demand curves, indicate what impact each of the following would have on the price level and on the equilibrium level
Using aggregate supply and aggregate demand curves, indicate what impact each of the following would have on the price level and on the equilibrium level of aggregate output in the short run. a. The Central bank sells bonds in the open market. b. The government decreases government spending. c. An increase in world oil prices that affects industrial production. d. The Central bank decreases reserve requirement ratio.
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