Suppose that an economy begins in equilibrium at E 1 as depicted in the graph to the right.
Suppose that an economy begins in equilibrium at E1 as depicted in the graph to the right.
Assume that the economy follows the Classical Model assumptions.
a. Using the line drawing tool, draw a new aggregate demand (AD) curve reflecting nbsp an an increase in the amount of money in circulation. Properly label this line.
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Carefully follow the instructions above, and only draw the required objects.
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