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(a) Draw an AS-AD chart showing the economy initially in AS-AD equilibrium. Next, suppose the price level target is raised. Using your AS-AD chart, illustrate

(a) Draw an AS-AD chart showing the economy initially in AS-AD equilibrium. Next, suppose the price level target is raised. Using your AS-AD chart, illustrate the effect on the economy in the short run. Briefly explain, with reference to the chart.

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