12. Use the accompanying diagram to answer questions a and b. a. Starting from the initial equilibrium

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12. Use the accompanying diagram to answer questions a and b.

a. Starting from the initial equilibrium in the diagram, illustrate the case of a supply-side fiscal policy that left the price level unchanged.

b. Compared to your answer in

a, when would a supply-side fiscal policy result in an increase in the price level?

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Exploring Macroeconomics

ISBN: 9781111970314

5th Edition

Authors: Robert L. Sexton

Question Posted: Oct 30, 2024 05:03 AM

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12. Use the accompanying diagram to answer questions a and b. a. Starting from the initial equilibrium

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Exploring Macroeconomics

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