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Using the AD/AS and the Phillips curve models,demonstrate graphically and explain in words the changes to output,unemployment and inflation caused by an expansionary fiscal policy.Show the short-run and long-run adjustments.Assume that the economy is initially in both short-run and long-run equilibrium,and that expected inflation is 2%.
Behavioral Conditioning
A learning process that involves forming associations between an environmental stimulus and a naturally occurring stimulus.
Extreme Phobia
An irrational and excessive fear of a specific object, situation, or activity.
Eye Movement Desensitization
A form of psychotherapy that is effective for resolving emotional distress associated with traumatic memories.
Inflated Estimates
Overestimations or exaggerated perceptions of the likelihood or magnitude of events, often influenced by cognitive biases.
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