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Part 2 Draw It- For each of the following scenarios, show the short-run effect of the policy on a correctly labeled AS/AD graph and money

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Part 2 Draw It- For each of the following scenarios, show the short-run effect of the policy on a correctly labeled AS/AD graph and money market graph. 5. The economy is at full employment and the government cuts taxes while the central bank lowers the federal funds rate. L L 6. The economy has a positive output gap and the government decreases spending while the central bank increases the discount rate. L L

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