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U.S. net exports fall due to recessions in foreign countries.
A. According to the aggregate demand and supply model, what happens to the price level and output in the short run?
B. According to the short-run Phillips curve what happens to inflation and unemployment in the short run?
C. If the Fed wanted to reverse the effects of this shock on output, what should it do?
Sample Proportion
The fraction or percentage of the sample that represents a particular characteristic or attribute.
Population Proportion
The ratio of members in a population who have a particular property to the total number of members in the population.
Binomial Experiment
An experiment or trial that can result in only two possible outcomes, such as success or failure, and follows the binomial distribution.
Probability of Success
The likelihood measured as a fraction or percentage, of achieving a desired outcome or positive result in an experiment or trial.
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