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30-11-2022
Business

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Figure: A Real Shock
Reference: Ref 18-2 (37-2)
(Figure: A Real Shock) Refer to the figure. After a real shock, the economy is operating at point Y in the figure. In the presence of crowding out, fiscal policy that would have shifted aggregate demand from AD 0 to AD 2 will only move the economy to point:
(ALSO)
(Figure: A Real Shock) Refer to the figure. After a real shock, the economy is operating at point Y in the figure. In the presence of crowding out, fiscal policy that would have shifted aggregate demand from AD0 to AD2 will only move the economy to point:
X

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