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Aggregate Demand in an Open Economy: Analyze the effects of the following shocks on trade balance at home: 1. A pandemic that reduces output both
Aggregate Demand in an Open Economy: Analyze the effects of the following shocks on trade balance at home:
1. A pandemic that reduces output both at home and foreign. 2. A reduction in income taxes in the home country. 3. A negative shock to consumer confidence. 4. A depreciation of the foreign currency relative to the home currency.
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