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Imagine That the Economy Is at a Point on the DD-AA

question 69

Essay

Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will happen next?


Definitions:

Pig Latin

A playful language game that involves altering words in English, primarily for amusement, by rearranging letters and adding a defined syllable at the end.

Graphic Signs

Symbols or marks used in writing or print to represent ideas, words, or instructions in a visual form.

Graphemes

The smallest units of written language that represent sounds or phonemes in a language.

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