Suppose the economy is at a point where short-run
Suppose the economy is at a point where short-run equilibrium output is lower than long-run output. Draw the IS/LM/FE graph to show the location of output and the interest rate in this equilibrium. Label this point A in your graph.
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suppose the economy is at a point where short-run equilibrium output is lower than long-run output draw the islmfe
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