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Use the Dynamic Aggregate Demand and Aggregate Supply Model and Start

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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 federal government to conduct contractionary fiscal policy.Briefly explain the condition of the economy and what the federal government is attempting to do.


Definitions:

Abdomen

The part of the body between the chest and the pelvis, containing the digestive organs.

BMI

Body Mass Index, a numerical value calculated from a person's weight and height, used to evaluate if a person is underweight, normal weight, overweight, or obese.

A&P

Anatomy and Physiology, the scientific disciplines that study the structure and function of the body.

Anatomy

The branch of biology concerned with the study of the structure of organisms and their parts.

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