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Classical model and the keynesian model

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Compare and contrast the results of the Classical Model and the Keynesian model after an expansionary policy. Keep in mind that the economy is in a recession and not at full employment. Address the following:

a. The shape of the aggregate supply curve in each model in both the long-run and short-run.

b. The effect of an expansionary policy on aggregate demand in both the long-run and short-run.

c. The effect of an expansionary policy on the price level in both the long-run and short-run.

Reference no: EM131414146

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