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Suppose an economy is hit by a recession and people's income fall. a) Show graphically using AD-AS model how the price level and output are

Suppose an economy is hit by a recession and people's income fall.

a) Showgraphicallyusing AD-AS model how the price level and output are affected in the short-run.

b) Can the government usefiscal policyto offset the effects on both price level and output simultaneously, explain?

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