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Assume that the economy is currently in equilibrium with real GDP equal to $6 trillion and...

Assume that the economy is currently in equilibrium with real GDP equal to $6 trillion and a real interest rate of 5%. However, full employment requires that real GDP be equal to $7 trillion. Compare the effects of moving the economy to full employment using only fiscal policy (shifting the IS curve) and moving the economy to full employment using only monetary policy. (4)

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