Explain expansionary fiscal policy may influence

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Assignment:

Assume that the economy starts at the 'natural rate of output'. Now suppose there is a decline in net exports due to the global economic downturn. Use the AD-AS diagram to show the effects in the short run and the medium run. Explain critically how expansionary fiscal policy may influence these equilibrium positions. Please use diagrams not only text.

Reference no: EM133295136

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