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Section 2. Ql. a) Assume consumer confidence falls. Show on your graph the short-run impact of the change in consumer confidence and label the new

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Section 2. Ql. a) Assume consumer confidence falls. Show on your graph the short-run impact of the change in consumer confidence and label the new equilibrium price level and output Y and PL, respectively. (4 pts.) b) how will this shift affect unemployment, and what types of unemployment might be affected? (4 pts.) Q2. Suppose the economy is in a long-run equilibrium. A) draw a diagram to illustrate the state of the economy. (4 pts.) B) Explain and show how the improvement of technology will affect both short and long aggregate supply. (8 pts.)

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