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Business, 18.06.2020 00:57 khalilattalah
Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap, inflationary or recessionary gap, will the economy face after the AD shock indicated by the shift in AD curves? What types of fiscal policy instruments will help move the economy back to the potential level of output (real GDP)? Give specific examples.
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Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium whe...
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