I) Starting from point A on PAE0 , briefly explain THREE reasons that would lead to change
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I) Starting from point A on PAE0 , briefly explain THREE reasons that would lead to change in PAE from PAE0 to PAE1 ? (5 marks)
II) Following from part a) above, what will be the effect on the multiplier. (2 marks)
III) Explain the process of adjustment from the intial equilibrium A to the new equilibirum B. (3 marks)
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