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The purpose of this assignment is to (1) encourage you to see economics at the macro level, and (2) sharpen your analytical skills in applying economic theory to real-world events.

Regional averages for inflation, unemployment and growth are xx, xx, xx. 

By using the Liquidity Preference Framework and the Aggregate Demand- Aggregate Supply analysis;

  • Suggest a monetary policy and/or a fiscal policy change for Lalaland. 

  • Show the effects of your proposed change(s) on major macroeconomic variables.


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