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Instructions: For each of the following, illustrate and explain the changes to AD and AS, output, price levels and employment that will occur in the

Instructions: For each of the following, illustrate and explain the changes to AD and AS, output, price

levels and employment that will occur in the short-run and in the long-run. Assume that wages are "sticky"

in the short-run and "flexible" in the long-run.

image text in transcribedimage text in transcribed
6. Education spending by state and federal government is reduced, which over time makes it harder for firms to higher skilled, qualified workers. The United States Economy PL| LRAS SRAS Pe . . . . . . . . .... AD Yfe rGDP Explain the short-run and long-run consequences of the change described above:5. A weakening of the value of the US dollar against other major currencies makes American goods more attractive to foreign consumers. The United States Economy PL LRAS SRAS Pe . . . . . . . . ...... AD Yfe rGDP Explain the short-run and long-run consequences of the change described above

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