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#41 please answer Question 42 (15 points) A) Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model, explain

#41 please answer

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Question 42 (15 points) A) Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model, explain what effect an increase in the money supply will have on the economy in terms of the short-run and medium-run equilibria. 15 points) B) Using the ZZTY and NX graphs, explain what effect an increase in foreign output (Y') will have on output, exports, imports, and net exports. Discuss in terms of the initial and final equilibria. [5 points) C) Explain what the Marshall-Lerner condition represents. [5 points]

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