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Assume that Germany's macroeconomic equilibrium is currently greater than potential GDP. The German government also starts a massive expansion of the railway system which will double the total length of the railway system. Using the AD-AS model, explain carefully the short and long-run effects of this event on the German economy. Draw by hand the appropriate AD-AS diagram to support your explanation.
IMPORTANT: Here is the correct answer to a similar question that has the equilibrium equal to the potential GDP to help you answer the above question.
https://imgur.com/a/Mv8BtCV
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