Illustrate the effects of the following developments on Phillips curves. Give the economic reasoning underlying your answers. b) Suppose that the government decided to invest in infrastructure and allocate its budget for this purpose. What will happen to the AD/AS curve and to the Phillips Curve if the crowding out effect happens in the short run?

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

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