1. Based on the aggregate demand-aggregate supply model, what is the effect of an increase in the...
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Question:
1. Based on the aggregate demand-aggregate supply model, what is the effect of an increase in the price level on potential GDP? Support your answer with a graph.
2. What happens to the aggregate demand curve in Saudi Arabia if the exchange rate increases, so that KSA-made products become more expensive? Support your answer with a graph
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