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For each of the following events, do a macroeconomic analysis by following these steps: Step 1: Assume the economy is initially in the long run equilibrium. Step 2: use either the Keynesian Cross model or the Liquidity Preference model to analyze what the initial impact of the event is. Step 3: use both the IS-LM model and the AD-AS model to analyze the short-run impact of the event. Step 4: If policy-makers want to stabilize the economy, what actions should they take
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For each of the following events, do a macroeconomic analysis by following these steps: Step 1: Assu...
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