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Answers thanks 6. The graph below shows the current equilibrium in an economy (Yp: potential output). P O ASo Po ADo YP Y If autonomous

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6. The graph below shows the current equilibrium in an economy (Yp: potential output). P O ASo Po ADo YP Y If autonomous consumption increases, (a) Show the SR and LR changes in the graph above. refer to Figure 1 1.9 in the lecture notes (b) What are the changes in output and price level from the current equilibrium to the new short-run equilibrium ? 1. V, or unchanged (c) What are the changes in output and price level from the current equilibrium to the new long-run equilibrium

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