Ap macroeconomics Exam: Course Study Guide [ unit I ] What is economics?
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(A)
D
LF
OUR
WAY
G
deficit
D
LF
r
,
r
I
,
I
AD
Financing
PL (P
2
-P
3
)
rGDP (Y
1
-Y
*
)
E (Y
*
- Y
3
)
UE (Y
*
- Y
3
)
(the increase in r leads to a decrease in the quantity of interest sensitive investment demanded)
The final
position of AD is between AD
1
and AD
2
.
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highest level
opportunity cost
systematic study
possible combinations
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basic problem
deficit DLF r , r I , I AD
