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Homework Chapter 36 Saved Help Save & Exit Subm The diagram below depicts an economy that is initially in equilibrium. Suppose that the central bank

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Homework Chapter 36 Saved Help Save & Exit Subm The diagram below depicts an economy that is initially in equilibrium. Suppose that the central bank causes real interest rates in the economy to increase. Using the diagram provided, graphically show the effects of this action on the short-run equilibrium. Instructions: (1) Use the tool provided 'AD,' to plot the new aggregate demand curve. Plot only the endpoints of the line. 54:53 AD and AS in the Short Run AD X AS Tools AB AD Price level P' AD Mc Graw Hill

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