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assume the economy of Mongolia is in a long run equilibrium with full employment draw a correctly labeled graph of SRAS, LRAS, and AD Assume

assume the economy of Mongolia is in a long run equilibrium with full employment

  1. draw a correctly labeled graph of SRAS, LRAS, and AD
  2. Assume there is an increase in consumer spending in Mongolia. On your graph in part A, show the effect this will have on the equilibrium in the short run
  3. what two fiscal policy options does the federal government have to fix the market imbalance? Explain how this would affect the economy

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