Graph an adas model with sticky wages and show graphically, Microeconomics

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Graph an adas model with sticky wages and show graphically

Question: Combination Policy

(a) Graph an AD/AS model with sticky wages and show graphically and explain with words how the Australian government with the help of the Reserve Bank could increase government spending while keeping the economy at full employment without causing changes in the price level.

(b) If they pursue this policy, what happens to the amount of investment in the economy?

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Microeconomics: Graph an adas model with sticky wages and show graphically

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