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12. Imagine you are the chief economist on the President's Council of Economic Advisers. The President has asked you to develop a policy that she

12. Imagine you are the chief economist on the President's Council of Economic Advisers. The President has asked you to develop a policy that she can announce during her upcoming State of the Union Address. Your staff knows the President has a fondness for the SAS-AD model. Unfortunately you can't you give her solid policy prescriptions based on that model because you do not know the location of the LAS curve. Explain why that is a serious problem.

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