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Country Analysis Report I chose Spain as my Country Using an aggregate demand/aggregate supply graph show the expected short-run effect of the fiscal policies on

Country Analysis Report

I chose Spain as my Country

  1. Using an aggregate demand/aggregate supply graph show the expected short-run effect of the fiscal policies on output and prices. What will happen to the unemployment rate? Include the AD, SRAS, LRAS on the graph. Label the initial equilibrium and the expected change to the equilibrium as a result of the fiscal policy.
  2. Name a pro-growth policy that the country could enact that would cause the production possibility curve out and the LRAS right?

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