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Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in a long-run macr

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Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in a long-run macr

Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in a long-run macroeconomic equilibrium. For Year 2, graph aggregate demand, long-run aggregate supply, and short-run aggregate supply such that the condition of the economy will induce the president and the Congress to conduct contractionary fiscal policy. Briefly explain the condition of the economy and what the president and the Congress are attempting to do.

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Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

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