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The first Keynesian economist is concerned about the effect of fiscal stimulus on inflation. He claimed...

The first Keynesian economist is concerned about the effect of fiscal stimulus on inflation. He claimed that the economy now is overheating. Any stimulus might increase both output and inflation. Please use the information above to draw the Keynesian AD-AS below and show that while economic growth can increase from 1% to 2%, inflation will also increase from 2% to 4%.

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