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IS-MP Analysis: Interest Rates and Output - End of Chapter Problem Macmillan Learning Assume the economy is currently in macroeconomic equilibrium. a. If consumers become

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IS-MP Analysis: Interest Rates and Output - End of Chapter Problem Macmillan Learning Assume the economy is currently in macroeconomic equilibrium. a. If consumers become more confident in the economic outlook and increase their consumption spending, aggregate expenditure will leading to in production. b. If Congress passes a new budget that decreases overall government purchases by 0.5% of GDP, aggregate expenditure will leading to in production

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