Draw what happens in the economy in short run when interest

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Reference no: EM13453314

1) Draw what happens in the economy in the short run when interest rates fall.

a. What components of GDP change-how and why?
b. How does aggregate demand and/or supply change? What type of gap is the economy in?
c. What is the impact on price, real GDP and unemployment?

Reference no: EM13453314

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