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For each of the following statements answer if they are TRUE or FALSE and use your knowledge of macroeconomic models to explain why. a) A

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For each of the following statements answer if they are TRUE or FALSE and use your knowledge of macroeconomic models to explain why. a) "A permanent demand shock that causes equilibrium output to rise above potential output will be negated in the long run, through the economy's adjustment process." b) "A relatively steep investment demand curve and a relatively flat money demand curve increase the effectiveness of expansionary monetary policy."

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