Discuss the effects on aggregate output and absorption, Microeconomics

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Discuss the effects on aggregate output and absorption

Problem

Suppose in the model that government expenditures increase temporarily. Determine the effects on aggregate output, absorption, the current account surplus, the nominal exchange rate, and the price level. What difference does it make if the exchange rate is flexible or fixed?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Discuss the effects on aggregate output and absorption

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Microeconomics: Discuss the effects on aggregate output and absorption

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