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Q8 (5 points) Consider the AA-DD framework. Suppose that due to a sudden loss in confidence, there is an expected depreciation of the domestic currency.

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Q8 (5 points) Consider the AA-DD framework. Suppose that due to a sudden loss in confidence, there is an expected depreciation of the domestic currency. ** Part a (3 marks) Show that how the AA curve shifts. ** Part b (2 marks) Does the long-run output change

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