In thinking about monetary and fiscal policies there are a, Business Economics

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In thinking about monetary and fiscal policies there are a

In thinking about monetary and fiscal policies there are a lot of models with different graphs involved. Let’s focus for a minute on some of the relationships between them.

A. Graph an increase in the money supply and the most likely effect this will have on the AD/AS model. Explain briefly the link between the two graphs.

B. Graph an increase in aggregate supply. What effect is this likely to have on the Phillips curve?

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Business Economics: In thinking about monetary and fiscal policies there are a

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