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Show the effects in the medium run of an increase in consumer confidence on an open...

Show the effects in the medium run of an increase in consumer confidence on an open economy that is on a flexible exchange rate. (Hint: An increase in consumer confidence will increase autonomous consumption spending). Assume that before the changes, the economy was at the natural level of output. To answer this question, drwa the following two diagrams:

1. The AS-AD curves

2. The IS-LM curves

Provide a brief explanation for the changes.

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