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1. WHAT CAUSES COINCIDENT FLUCUATIONS IN THE PRICE LEVEL, UNEMPLOYMENT AND OUTPUT IN THIS MODEL ? 2.DEPICT IT GRAPHICALLY 3.IS THIS CONSISTENT WITH OBSERVED BUSINESS

1. WHAT CAUSES COINCIDENT FLUCUATIONS IN THE PRICE LEVEL, UNEMPLOYMENT AND OUTPUT IN THIS MODEL ?

2.DEPICT IT GRAPHICALLY

3.IS THIS CONSISTENT WITH OBSERVED BUSINESS CYCLES ?

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