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2. Explain how will each of these affect the economy in the short run and the long run (in terms of output, unemployment and inflation)

2. Explain how will each of these affect the economy in the short run and the long run (in terms of output, unemployment and inflation)

a. Government decides to take policy to reduce deficit.

b. Construction workers goes on a strike for 2 months.

c. US dollar depreciates with respect to euro

d. People become more optimistic about the economy

e. Productivity of U. S workers increase due to technological advancement

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