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    Principles of Macroeconomics Study Set 1
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    Exam 15: Aggregate Demand and Aggregate Supply
  5. Question
    Figure 33-17. Refer to Figure 33-17. Suppose the Economy Starts at P3
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Figure 33-17. Refer to Figure 33-17. Suppose the Economy Starts at P3

Question 113

Question 113

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Figure 33-17. Figure 33-17.   Refer to Figure 33-17. Suppose the economy starts at P3 and Y2. Explain how government purchases would need to change to move the economy to P2 and Y1. What about taxes?
Refer to Figure 33-17. Suppose the economy starts at P3 and Y2. Explain how government purchases would need to change to move the economy to P2 and Y1. What about taxes?

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decrease in governme...

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