27. Explain what will happen in a nation that tries to solve a structural unemployment problem using
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27. Explain what will happen in a nation that tries to solve a structural unemployment problem using expansionary monetary and fiscal policy. Draw one AD/
AS diagram, based on the Keynesian model, for what the nation hopes will happen. Then draw a second AD/
AS diagram, based on the neoclassical model, for what is more likely to happen.
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