Assume that the AS curve is flat up to the full-employment national income level, Y F ,

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Assume that the AS curve is flat up to the full-employment national income level, YF, after which it becomes vertical. Combining the AD/AS and 45° line models, illustrate the effect on the multiplier of an increase in AD at output levels below Yand at YF

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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