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Enhancing Agricultural Productivity through Sustainable Practices

Learn about sustainable agriculture techniques, crop rotation, soil enrichment, and water conservation to achieve higher yields, improve soil fertility, and ensure long-term food security.

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Enhancing Agricultural Productivity through Sustainable Practices

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  1. Example: Perm increase in G, no policy intervention Notes: IS and AD moves right, increase in G Y goes up in short term (only by G. I goes down and C stays put) Because r goes up, we “entice” firms to keep producing by increasing P. - shifts LM left, raising r even more - shifts labor supply down Nd Self-correcting action: People get upset About working more and getting paid less So wages go up. When wages go back up, SRAS moves left, which raises prices again. This Moves LM left again, which raises r again. This crowds out investment. %ΔP = %ΔW |ΔI|=|ΔG| Short Run 0 0 0 0 0 0 0 0 Long Run 0 0 0 0 0 0 0 0 0

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