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What is the likely impact of expansionary policies when the economy is operating at full capacity on the vertical portion of the AS curve? Illustrate.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 9QP

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What is the likely impact of expansionary policies when the economy is operating at full capacity on the vertical portion of the AS curve? Illustrate.

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