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a. Illustrate with the use of AD/AS diagram an inflationary gap? Explain and illustrate on the diagram how the inflationary gap can be eliminated. b.

a.Illustrate with the use of AD/AS diagram an inflationary gap? Explain and illustrate on the diagram how the inflationary gap can be eliminated.

b.What might cause long-term interest rates to rise in late 2020, although currently the Reserve Bank interest rate is almost zero?

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