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The following raph combines the DD and AAschehales Note exchange rate is measured as dollar per euro The current economy is at its full-employment level

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The following raph combines the DD and AAschehales Note exchange rate is measured as dollar per euro The current economy is at its full-employment level Exchange rate DD E AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select] leading to [ Select] in the short-run. In the asset market, the permanent change in the fiscal policy will [Select] shifting the AA curve to Select) in the short-run. The changes in the asset market will AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve wi (Select ] leading to shift to the right shift to the left [ Select) stay unchanged jet market, the permanent change in the v fiscal policy will [Select] shifting the AA curve to ( Select in the short-run. The changes in the asset market will Select AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select ] leading to [ Select ] A It-run. In the asset market, the permanent change in the a lower output and higher exchange rate a higher output and higher exchange rate a lower output and lower exchange rate shifting the AA curve to a higher output and lower exchange rate T Select in the short-run. The changes in the asset market will (Select] AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select ] . leading to [Select] in the short-run. In the asset market, the permanent change in the urve to fiscal policy wi [ Select] increase the price level, decrease the price level decrease the expected exchange rate [Select) increase the expected exchange rate he asset market will Select) AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select] leading to [Select] in the short-run. In the asset market, the permanent change in the V fiscal policy will [Select] shifting the AA curve to in the short-run. The changes in the asset market will Select ] to the right to the left AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select] . leading to Select] in the short-run. In the asset market, the permanent change in the V fiscal policy will [Select) shifting the AA curve to [Select] in the short-run. The changes in the asset market will V [ Select] decrease the net exports increase the real money supply decrease the real money supply increase the net exports The following raph combines the DD and AAschehales Note exchange rate is measured as dollar per euro The current economy is at its full-employment level Exchange rate DD E AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select] leading to [ Select] in the short-run. In the asset market, the permanent change in the fiscal policy will [Select] shifting the AA curve to Select) in the short-run. The changes in the asset market will AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve wi (Select ] leading to shift to the right shift to the left [ Select) stay unchanged jet market, the permanent change in the v fiscal policy will [Select] shifting the AA curve to ( Select in the short-run. The changes in the asset market will Select AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select ] leading to [ Select ] A It-run. In the asset market, the permanent change in the a lower output and higher exchange rate a higher output and higher exchange rate a lower output and lower exchange rate shifting the AA curve to a higher output and lower exchange rate T Select in the short-run. The changes in the asset market will (Select] AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select ] . leading to [Select] in the short-run. In the asset market, the permanent change in the urve to fiscal policy wi [ Select] increase the price level, decrease the price level decrease the expected exchange rate [Select) increase the expected exchange rate he asset market will Select) AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select] leading to [Select] in the short-run. In the asset market, the permanent change in the V fiscal policy will [Select] shifting the AA curve to in the short-run. The changes in the asset market will Select ] to the right to the left AA Yf Output Y Suppose the government permanently increases its investments in the higher education support program. The DD curve will [Select] . leading to Select] in the short-run. In the asset market, the permanent change in the V fiscal policy will [Select) shifting the AA curve to [Select] in the short-run. The changes in the asset market will V [ Select] decrease the net exports increase the real money supply decrease the real money supply increase the net exports

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