ECO 372 Week 4 participation Principles of Macroeconomics, Ch. 21: The Influence of Monetary and

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 ECO 372 Week 4 participation Principles of Macroeconomics, Ch. 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
 

Consider the following as you read:

 

 

 

Consider the theory of liquidity preference. How does it help explain the downward slope of the aggregate-demand curve?
 

 

Be prepared to give an example of a government policy that acts as an automatic stabilizer. Explain why the policy has this effect.
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