E… Show more The dynamic adjustment of the price level and

E… Show more The dynamic adjustment of the price level and

E… Show more The dynamic adjustment of the price level and output to an increase in G: a. Explain how the economy moves from E1 to short-run equilibrium, point F, in graphs A and B b. Using Graphs A and B and C, illustrate how the economy goes from SR equilibrium, F, to final equilibrium, E2, and label the coordinates as appropriate. Label final equilibrium in the money market, point B. c. In the space below, explain carefully and analytically your graphical analysis (2. b.) above. (Your analysis should include how and why each graph is affected • Show less

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