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Aggregate supply curve of shangri la

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Reference no: EM132550798

Please answer the questions with information, comments and graphics.

1. The shape of the aggregate supply curve of Shangri La is steep and the government applied expansionary monetary and fiscal policy for decreasing inflation. According to these policies, what happens ? If these policies are not the correct ones, draw graphs and show and explain the correct ones.

2. The shape of the aggregate supply curve of Xanadu is flat and the government applied contractionary monetary and fiscal policy for increasing economic growth. According to these policies, what happens ? If these policies are not the correct ones, draw graphs and show and explain the correct ones.

Reference no: EM132550798

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