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Using the AD-AS diagram, explain the effect of the following on price and real income. (a) Prediction of World War 3 next year (b) Consumers

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Using the AD-AS diagram, explain the effect of the following on price and real income. (a) Prediction of World War 3 next year (b) Consumers are optimistic about the economy (c) The government has increased sales and service tax (d) The minimum age for working has been reduced [Hint: ZERO marks will be given if there are no diagrams]

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