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Using aggregate supply and aggregate demand diagrams
Course:- Business Economics
Reference No.:- EM131101503




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Using aggregate supply and aggregate demand diagrams, illustrate each of the following situations:

When will expansionary monetary policy mainly increase inflation, but have little effect on output?

When will contractionary monetary policy increase unemployment, but have little effect on inflation?

When will expansionary monetary policy reduce unemployment, but have little effect on inflation?

When will contractionary monetary policy reduce inflation, but have little effect on unemployment?




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