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2- [4 Points] The economy is in longrun macroeconomic equilibrium when the point of shortrun macroeconomic equilibrium is on the long run aggregate supply curve-
2- [4 Points] The economy is in longrun macroeconomic equilibrium when the point of shortrun macroeconomic equilibrium is on the long run aggregate supply curve- Using a graph} depict and explain the shortrun versus longrun effects of: I- A con1ractionary monetary policy resulting in demand shock on the longrun macroeconomic equilibrium. Use one contractionary monetary policy to illustrate your analysis? explain the nature of the policy and clearly depict the direction of the shift and changes in the equilibrium point, where necessary. I]. An expansionary scal policy resulting in demand shock on the longrun macroeconomic equilibrium. Use one expansionary monetary policy to illustrate your analysis, explain the nature of the policy and clearly depict the direction of the shift and changes in the equilibrium point, where necessary. [I]. A negative demand shock on the longrun macroeconomic equilibrium. Clearly depict the direction of the shi and changes in the equilibrium point: where necessary
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