What are the key differences between how we illustrate a contractionary fiscal policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model?
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Q115: Use the dynamic aggregate demand and aggregate
Q116: Figure 16-7 Q117: Figure 16-9 Q118: An appropriate fiscal policy response when aggregate Q119: If the economy is slipping into a Q121: If the tax multiplier is -1.5 and Q122: The multiplier effect refers to the series Q123: A change in consumption spending caused by Q124: The aggregate demand curve will shift to Q125: Economists refer to the series of induced
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