Draw a correctly labeled AD/AS graph showing:the problem in the economycurrent price level and outputfull employment outputIdentify a fiscal policy action that could resolve the problem.Using your graph in Part A, show and explain the short-run effects of the action you identified on each of the following (hint: use the cause and effect chain you learned in the lesson):aggregate demandoutput and employmentprice levelUsing a correctly labeled loanable funds graph, show the effect of the policy you identified in Part B on real interest rates.Given your answer in Part D, explain what will happen to each of the following:the international value of the dollarthe nations exports and imports
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