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  3. 2 12 marks use a adas diagram to illustrate the...

Question: 2 12 marks use a adas diagram to illustrate the...

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2. (12 marks) Use a AD/AS diagram to illustrate the use of expansionary monetary policy to close an expansionary gap. a. Label the axes. b. Label the lines. And show c. Show the new AD line after the expansionary monetary policy is applied. d. Briefly explain what your diagram shows. e. Explain what monetary policies impact. the expansionary gap with the LRAS. RAS SRAS
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