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GDP is down .5% for the previous qtr, after having been in a decline for the previous twelve months. CPI has been steady for the past twelve months. Unemployment has risen .8% during the previous quarter, after having risen steadily for the past twelve months. (1)What phase of the business cycle is the economy in? How do you know?(2) Do want aggregate demand to move? Which way? Why? (3) List one fiscal and one monetary policy that you could use to influence the economy, and tell how you would use them.

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