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Q11) a. using a diagram that begins with an eocnomy operating at Yfe, show and explain what will happen to output, unemployment, and the price
Q11) a. using a diagram that begins with an eocnomy operating at Yfe, show and explain what will happen to output, unemployment, and the price level if Country A's government reduces the use of fossil fuels to generate electricity and makes firms use more expensive alternative energy. [10 pts] b. Using the same diagram as above, show and explain what will happen to output, unemployment, and inflation if the central bank decides to sell short-term governemtn bonds to investors and banks in that country [10 pts]
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