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1. Explain how an increase in the price level changes interest rates. How does this change in interest rates lead to changes in investment and

1.      Explain how an increase in the price level changes interest rates. How does this change in interest rates lead to changes in investment and net exports? (5 points)

2.      Make a list of things that would shift the aggregate demand curve to the right. (5 points)

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1 Price level refers to the measure of all prices within an economy Inflation is the general increas... blur-text-image

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