Aggregate Supply, Aggregate Demand, and Long-Run Equilibrium Please list one event that impacts AD (i.e. cause AD to shift to either left or right). Please list one event that impacts the position of short-run AS. Please talk about how a contractionary monetary policy shifts the AD curve.

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Q: None

A: Referencehttps://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Monetary-Policy

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A: We are going to understand the dynamics of Foreign exchange market of US to answer this question.

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Q: In the graph that you have drawn in question 1, what is the state of the economy? Using fiscal…

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Q: Price Level

A:

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