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Figure 1:01 LAS SAS 130 120 Price level (GDP deflator, 2009/10 = 100) 110 100 90 AD 0 11 13 15 17 19 21 Real

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Figure 1:01 LAS SAS 130 120 Price level (GDP deflator, 2009/10 = 100) 110 100 90 AD 0 11 13 15 17 19 21 Real GDP (billions of 2009/10 dollars) 1. In Figure 1:01, which fiscal policy could help move the economy to potential GDP? A. Decreasing autonomous taxes B. Decreasing government expenditure C. Increasing government expenditure D. Both answers A and B are correct.Figure 1:04 51 50 Exchange rate (yen per dollar) Quantity (trillions of dollars per day) 25. In Figure 1:04 above, the shift in the supply curve for Australian dollars from So to $1 could occur when A. the Australian interest rate differential increases. B. the expected future exchange rate falls. C. the current exchange rate falls. D. the Australian interest rate differential decreases

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