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Suppose an economy is below full employment and that the central bank carries out an expansionary monetary policy to stimulate job creation. a. Explain

Suppose an economy is below full employment and that the central bank carries out an expansionary monetary policy to stimulate job creation. a. Explain what the central bank can do to achieve this goal. b. Show the process with the help of an AS-AD diagram. c. What changes are there, if any, in the components of aggregate demand and why?

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