Recall the PAE model you studied in class, where The unlabelled diagram bel...
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Recall the PAE model you studied in class, where
The unlabelled diagram below presents the initial equilibrium in Country X.
Assume that due to increasing uncertainty about the future state of the economy, households in Country X increased their exogenous (i.e., autonomous) savings.
Which diagram below is the best representation of this change?1.
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