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Graph and label the recessionary gap in the economy

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Question

1. Graph and label the economy when it is at equilibrium and label the AD, LRAS, and SRAS.

2. Graph and label the recessionary gap in the economy.

3. Graph and label the recessionary gap in the economy.

4. If there is an increase in government spending, please illustrate what happens to aggregate demand and the price level.

5. If there is an increase in marginal tax rates, please illustrate what happens to the short-run aggregate supply curve and the price level.

6. Graph the Phillips Curve and provide a brief explanation of what it illustrates.

Reference no: EM133427304

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