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Suppose the following information:Monetary policy curve, ( MP ) : = 2 + IS curve: = 2 0 2 1 . Derive an expression for
Suppose the following information:Monetary policy curve, MP: IS curve: Derive an expression for the aggregate demand AD curve Suppose that increases to Derive a new expression for the aggregate demand AD curve and graph Compare your answers in and regarding the behavior of the Fed towards this changes.
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