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Problems
Problem 1.1:
What are the axes of the aggregate demand curve?
[Solution]
Problem 1.2:
What does aggregate demand represent?
[Solution]
Problem 1.3:
What is the basic equation for aggregate demand?
[Solution]
Problem 1.4:
What does the term C(Y - T) mean in the equation for aggregate demand?
[Solution]
Problem 1.5:
What happens to net exports as the real exchange rate rises?
[Solution]
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