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Assume the economy is operating beyond the full-employment output level, as shown in the graph below. The government wants to use contractionary fiscal policy to

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Assume the economy is operating beyond the full-employment output level, as shown in the graph below. The government wants to use contractionary fiscal policy to correct the situation. Drag the appropriate line to the correct position to show the change. (which line and where does it shift)

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Price Level 16 SRAS1 15 14 13 12 11 10 9 AD2 LRAS

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