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The country is experiencing recession because consumer confidence decreases. (a) If the government does nothing, draw an AD-AS graph to show what happens in short
The country is experiencing recession because consumer confidence decreases.
(a) If the government does nothing, draw an AD-AS graph to show what happens in short run and then long run after the decrease in consumer confidence.
(b) Suppose in short run after the decrease in consumer confidence, the government cuts taxes to revive the economy. Draw an AD-AS graph to show the effects of the policy
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