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Please solve it 2. Why is an economy not in equilibrium when aggregate demand is not equal to aggregate supply? 3. Does the level of

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2. Why is an economy not in equilibrium when aggregate demand is not equal to aggregate supply? 3. Does the level of stocks, held by firms, change when aggregate demand falls short of aggregate supply? 4. Explain what is meant by multiplier. Why should the value of the multiplier rise when people spend more on consumation? 5. Is it possible for total saving to fall when people become more thrifty? Look carefully at Figure 4.9 to find the condition under which this might happen. 6. What would happen to the multiplier if investment were to be positively related, to income

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