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1.Explain how each of the following affects AD (aggregate demand) or SAS (short-run aggregate supply) curves, and subsequently real GDP and price levels, given all
1.Explain how each of the following affects AD (aggregate demand) or SAS (short-run aggregate supply) curves, and subsequently real GDP and price levels, given all other things remain equal. (Use a graph to show your answer in each case).
a.A bust in the housing market bubbles
b.A major technological breakthrough increasing labour productivity
c.The Central Bank buys government bonds from commercial banks
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