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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.
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(A) What is the difference between a movement along a demand or supply curve and a shift of one of these curves? Why is it important to distinguish between the two? What mistake
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