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PRICE LEVEL 9. Fiscal policy, the money market, and aggregate supply Suppose the government decides to stimulate economic growth by investing in education, but
PRICE LEVEL 9. Fiscal policy, the money market, and aggregate supply Suppose the government decides to stimulate economic growth by investing in education, but everything else in the economy remains the same. Show the intended short-run effect of this fiscal policy on aggregate supply by shifting the short-run aggregate supply (SRAS) curve. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. REAL GDP AD SRAS AD SRAS
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