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SOLVED: Suppose there is unexpected deflation this year that reduces the aggregate price level by 10%. The economy is depicted in the figure below.a.) How does deflation affect borrowers and lenders?Both borrowers and lenders are negatively impacted.SRASBorrowers are negatively impacted and lenders are positively impacted.Both borrowers and lenders are positively impacted Aggregate Price Level Borrowers are positively impacted and lenders are negatively impacted.ADReal GDPb.) Adjust the graph to
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