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2. Drive the AD (Aggregate Demand) curve using the following: IS curve is given as Y = 20XX-100i, LM1is Y= 1000+25i (when P = 1) and LM2is Y= 500+25i (when P =2), where XX is the last two digits of your student ID number. Show the derivation in (interest rate-income) and (price level-income) spaces.(You may insert a snapshot of the graphs if drawn manually).(5 marks) |
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Answer» Explanation: |
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