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1. Apply the aggregate demand and aggregate supply analysis (chapters 9 and 10) to study the effects on the economy of an increase in unemployment benefit, financed by an increase in taxation. (You may assume a closed economy.)
1. Marks are given for clarity of exposition and accuracy. This includes appropriate use of technical terms, equations, data and diagrams.
2. Use complete, grammatically correct sentences.
3. The essay should be at most 1000 words, plus diagrams and references.
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