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One can think of an economy as being constantly hit by shocks. Assume an economy is faced by the idependent shocks listed below. Ise the

One can think of an economy as being constantly hit by shocks. Assume an economy is faced by the idependent shocks listed below. Ise the aggregate demand-aggregate supply model to examine the impact of each of these shocks on the economy:

1. There are shifts in consumption following a decrease in conumer confidence in the economy.

2. There are shifts in investment following an increase in investor confidence in an economy.

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