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    Exam 17: Output and the Exchange Rate in the Short Run
  5. Question
    Demonstrate How a Permanent Fiscal Expansion Will Not Increase Output
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Demonstrate How a Permanent Fiscal Expansion Will Not Increase Output

Question 9

Question 9

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Demonstrate how a permanent fiscal expansion will not increase output in the long run.

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(1) E on Y-axis, Y on X-axis
(2) DD shif...

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