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And the LM curve is given by the following equation: In a standard AS-AD framework: Explicitly derive the AD curve. What are the slope and intercept of this curve? Derive the demand for labor if the production function is given by F(I)-11/2 Illustrate the labor market graphically. Assuming the Classical Paradigm and that the economy consists of 100 total individuals (workers), derive the AS curve. Define equilibrium in words and solve for all equilibrium values. Which of the following two policies, monetary expansion or tax reductions, will have a larger impact on increasing output? Explain your answer. a. b. c. d.
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Answer #1

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