Indicate if gdp is affected

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Determine the macroeconomic effects of the following macroeconomic event when the economy is initially at less than full employment. The required reserve ratio is 5% and the Federal Reserve Bank carries out a $20 million open market purchase. Banks hold no excess reserves. Price effects dominate income effects.

Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.

Reference no: EM135411

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