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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 Comparison of the Impact
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Demonstrate Graphically and Explain Verbally the Comparison of the Impact

Question 72

Question 72

Essay

Demonstrate graphically and explain verbally the comparison of the impact of a drop in the price level on the shape of the aggregate demand curve when the multiplier effect is positive to when it is zero.

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With a multiplier effect of zero the AD ...

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