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    Economics Study Set 8
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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    Demonstrate Graphically and Explain Verbally the Role the Multiplier Effect
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Demonstrate Graphically and Explain Verbally the Role the Multiplier Effect

Question 155

Question 155

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Demonstrate graphically and explain verbally the role the multiplier effect has in the shape of the aggregate demand curve.

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Suppose we start at point A on the AD cu...

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