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Please help me with these practice exam questions Question 2 (this question has two parts, (a) & (b)) (a) Beginning at long-run equilibrium, use the
Please help me with these practice exam questions
Question 2 (this question has two parts, (a) & (b)) (a) Beginning at long-run equilibrium, use the basic (static) aggregate demand and aggregate supply model to illustrate (i) what happens in the short run and long run when there is an unexpected increase in tax on imported final goods, and (ii) what happens in the short run and long run after an unkxpected increase in tax on imported intermediate goods. (7+7 Marks) (b) The following table contains information about prices and guantities in a hypothetical economy for three years. Using the information, calculate the economic growth rate between 2021 and 2020, and the inflation rate from 2020 to 2021. 2020 Products Quantity Quantity Bread 33 12 14 $5 15 Ener drink?' $2 20 30 $4 40 Pizza $5 25 30 $10 25 Second hand $20 10 20 $28 22 Books [10 marks]Step by Step Solution
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