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(2). Shifting SAS0 to SAS1
Government should Shifting SAS0 to SAS1 In this situation the price level will decreased and GDP will increase. If Government chose option 1 then Price will decrease and GDP will decrease also. If government chose option 3 then price will decrease but GDP will constant and in case of choosing option 4 then price and GDP both will decrease.
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LAS SAS2 130 SAS 120 SASO Price level (GDP deflator, 2000 = 100) 110 А B 100 F AD2 AD ADO O 6 8 10 12 14 16 Real GDP (trillions of 2000 dollars) If instead the government decides not to interfere with the economy and let the economy recover by itself, then__---, causing__---- 1) workers renegotiate their wages; ADO to shift to AD1. 2) workers renegotiate their wages; SASO to shift to SAS1. 3) workers renegotiate their wages; SAS1...
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GIVE ONLY ANSWERS AND ANSWER ALL
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It's a Recession 75 Percent of Americans Say 140 Price level (GDP deflator, 2007=100) LAS SASO 130 In a telephone poll of over 1,000 adult Americans, 75 percent said they believe the nation is now in a recession. Of those who think the economy is in a recession, 27 percent said they believe we are in a serious rocossion Americans are less confident in the future of the economy than they were in March. The poll showed that 23 percent...
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Macroeconomic
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GIVE ONLY ANSWERS AND ANSWER ALL
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