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3. [ 4 points] Show the effects of a positive technology shock in the long and short run? Please use AD/AS model to demonstrate your

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3. [ 4 points] Show the effects of a positive technology shock in the long and short run? Please use AD/AS model to demonstrate your answer. 4. [ 4 points] Suppose that the rate of returns on U.S dollar is 2% and the rate of return on Japanese yen () is 2.5%. Under interest parity, find the ratio of the current to the expected exchange rate (E/8)? N

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