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Unformatted text preview: Using a NS/NAF graph, show what happens immediately when consumers reduce their willingness to save. Also, derive the equation for AE = Y from NS = NAF. QUESTION 4 Assume the economy is initially at potential. Using an AD/AS/LRAS graph, show what happens immediately and in the short-run as a result of MPImport rising. Comment on the economy's long-run options, and their advantages and disadvantages. ECON105 week 4 questions Eldar Sehic SFU 2009-3...
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This note was uploaded on 12/07/2010 for the course ECON ECON 105 taught by Professor S during the Spring '10 term at Simon Fraser.
- Spring '10