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Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model.
a) Explain and illustrate the economy adjustment (in the medium run)
b) Explain and illustrate the economy adjustment (in the medium run) without devaluation.
You can work on this assignment individually or in a group of up to 4 people. If you choose to work as a group, your group should hand in one assignment and you will all receive t
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