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Question 1:Show the effects of the following changes on the status of the expenditure line AND the aggregate demand . Explain your answers and support
Question 1:Show the effects of the following changes on the status of the expenditure lineAND the aggregate demand. Explain your answers and support your answer graphically in each case. (Each part has 3 points)
- A stronger currency.
- An increase in the general price level.
- A reduction in the real interest rate.
- An increase in government expenditures.
- A reduction in independent consumption as a result of wealth
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