Assume the qatari government is pursuing an expansionary, Business Economics

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Assume the qatari government is pursuing an expansionary

Assume the Qatari government is pursuing an expansionary fiscal policy by increasing government purchases. Show the short run and long run impact of this policy on the macroeconomic equilibrium point using AD and AS model (assume that Qatar’s economy initially operates at the potential level of GDP). You need to draw a graph and briefly explain the short run and long run impact of this expansionary fiscal policy.

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Business Economics: Assume the qatari government is pursuing an expansionary

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