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This document contains solutions to homework questions about aggregate demand and aggregate supply (AD/AS) and the Phillips curve. It includes: 1) An explanation of how a $100 billion increase in government purchases would shift the aggregate demand curve due to multiplier and crowding-out effects. 2) Calculations using a production function to find the natural unemployment rate, inflation rate, and unemployment rate that result from a fiscal expansion moving the economy from long-run to short-run equili

Author

shakeel ahmad

Language

EN