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The graph shows an aggregate demand curve. Suppose there is anincreaseincrease in the exchange rate Draw a new curve to show the effect of this

The graph shows an aggregate demand curve.

Suppose there is anincreaseincrease in the exchange rate

Draw a new curve to show the effect of this change on aggregate demand. Label the new curve C1.

Now suppose that there is anincreaseingovernment expenditures.

Draw a new curve to show the effect of this change on the original AD curve. Label the new curve C2.

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