In the space below draw the new keynesian sticky prices, Business Economics

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In the space below draw the new keynesian sticky prices

New Keynesian Sticky Prices Model

In the space below, draw the new Keynesian sticky prices model. Label completely and correctly.

Next, suppose there is an output gap. Suppose the government chooses to use scal policy to close the output gap. Illustrate this approach. State why each curve moves or does not move. Summarize your results.

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Business Economics: In the space below draw the new keynesian sticky prices

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Business Economics: In the space below draw the new keynesian sticky prices

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