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Using the IS/LM and AS/AD framework tell me what you anticipate in the SR and LR to r, y, and p given the following scenarios
Using the IS/LM and AS/AD framework tell me what you anticipate in the SR and LR to r, y, and p given the following scenarios (show/label the graphs and clearly show whether you anticipate r, y, and p in SR & LR for full credit). Here you can assume you have a closed economy. a. Business taxes are increased b. The Federal Reserve institutes an expansionary monetary policy c. An oil shock occurs (prices drastically increase) decreasing aggregate productivity
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