Use the Dynamic Aggregate Demand and Aggregate Supply Model and Start

question 133

Essay

Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in a long-run macroeconomic equilibrium.For Year 2,graph aggregate demand,long-run aggregate supply,and short-run aggregate supply such that the condition of the economy will induce the president and Congress to conduct contractionary fiscal policy.Briefly explain the condition of the economy and what the president and Congress are attempting to do.

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Definitions:

Global Scale

A perspective or measurement tool that considers the entire world or major regions of it.

Fake Good

The tendency to present oneself in an overly favorable manner, often seen in social or evaluative situations.

Positive Self-presentation

The practice of intentionally displaying oneself in a positive light to others to enhance one's social image or influence perceptions.

Extrinsic Motivation

Motivation outside the self, such as money or praise from others.