Using given diagram define government purchases

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Reference no: EM131443673

Question: Use the following diagrams and

a. show what would happen in both diagrams if government purchases increase in the short run.

b. show what would happen in both diagrams if the growth rate of the money supply was reduced in the short run.

c. show what would happen in both diagrams if people came to expect a higher rate of inflation.

d. show what would happen in both diagrams if a favorable supply shock occurred.

Reference no: EM131443673

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