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Manipulate the graph to show what happens when credit markets shrink (i.e., when there is less credit available). Note that the economy starts at full

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Manipulate the graph to show what happens when credit markets shrink (i.e., when there is less credit available). Note that the economy starts at full employment (Y full)- How does this change in the credit markets affect the price level and unemployment? AS O It will result in deflation and higher unemployment. O It will result in inflation and higher unemployment. O It will result in inflation and lower unemployment. O It will result in inflation, but there is not enough information to predict the effect on unemployment. Price level O It will result in deflation, but there is not enough information to predict the effect on unemployment. AD O It will result in deflation and lower unemployment

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