In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation?
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In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers.
A large increase in the price of the homes people own.
Rapid growth in the economy of a major trading partner.
The development of a major new technology offers profitable opportunities for business.
The interest rate rises.
The good imported from a major trading partner become much less expensive.
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