Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run. . An increase in government purchases...

Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run.

. An increase in government purchases


a. A reduction in nominal wages


b. A major improvement in technology


c. A reduction in net exports




May 26, 2022
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