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.Suppose that the economy is hit by an unexpected large negative aggregate demand shock.Explain, using the IS-PC-MR diagrams, how the central bank can intervene to
.Suppose that the economy is hit by an unexpected large negative aggregate demand shock.Explain, using the IS-PC-MR diagrams, how the central bank can intervene to escape the trap? Discuss the limits of the conventional monetary policy in this case?
please include diagrams
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