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1. Use the DD-AA model to answer the following. Make sure to show the original effects in the goods or asset markets that drive the
1. Use the DD-AA model to answer the following. Make sure to show the original effects in the goods or asset markets that drive the changes in e and Y in the DD-AA total market: a) The Fed temporarily contracts the money supply to curb inflationary pressure during an expansionary period of the business cycle. b) The government in response to a recession pass a temporary stimulus package. c) In order to fund an expansion of social welfare programs, income taxes are permanently increased 1. Use the DD-AA model to answer the following. Make sure to show the original effects in the goods or asset markets that drive the changes in e and Y in the DD-AA total market: a) The Fed temporarily contracts the money supply to curb inflationary pressure during an expansionary period of the business cycle. b) The government in response to a recession pass a temporary stimulus package. c) In order to fund an expansion of social welfare programs, income taxes are permanently increased
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