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One can think of an economy as being constantly hit by shocks. Assume an economy is faced by the independent shocks listed below. Use the
One can think of an economy as being constantly hit by shocks. Assume an economy is faced by the independent shocks listed below. Use the aggregate demand - aggregate supply model to examine the impact of each of these shocks on the economy.
1.1 These are shifts in consumption following a decrease in consumer confidence in the economy.
1.2 These are shifts in investment following an increase in investor confidence in an economy.
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