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1. Draw and explain the three ranges on the aggregate demand and supply graph.
2. Where is the demand curve today on the US aggregate supply curve? Explain
3. Draw the short run Phillips curve and relate it to our economy today. Make sure to label both axis and include a dot on the curve that represents our state of economy. Explain your graph.
4. State all the appropriate fiscal and monetary policies when the aggregate demand curve is in range A. Do the same for range C.
5. Get an article on the economy. Relate it to either the AE/AP Keynesian model or the aggregate supply and demand graph. Draw graph to explain the relationship between the article and the model.
6. Defend this statement: A weak dollar creates jobs while a strong dollar helps the consumer and hence the economy. So which one do we want?
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