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2. 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

2. 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 SASAD 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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