Question

Using the ADAS model, show what happens when the economy is in long-run equilibrium (our normal...

Using the ADAS model, show what happens when the economy is in long-run equilibrium (our normal graphing starting point), and then the government does expansionary fiscal policy, and then after RGDP returns to its original level it does one more round of expansionary fiscal policy . Hint: There should be points 1,2,3,4,5.

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