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Question: Use the accompanying diagram to answer questions a-f.
a. At what short-run equilibrium point might expansionary fiscal policy make sense to help stabilize the economy?
b. What would be the result of appropriate fiscal policy in that case?
c. What would be the long-run result if no fiscal policy action were taken in that case?
d. At what short-run equilibrium point might contractionary fiscal policy make sense to help stabilize the economy?
e. What would be the result of appropriate fiscal policy in that case?
f. What would be the long-run result if no fiscal policy action were taken in that case?
Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in your own words,
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