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By given scenario answer the following questions.
1. What phase of the business cycle is the economy?
2. If inflation increased by 5% during the same period, what was the change in nominal GDP?
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Explain the law of diminishing marginal returns using the example of a factory which is currently running at half capacity and employs more staff
1 ) GDP Consumption 240 244 250
Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.
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