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Setting Fiscal policy

Choose a FISCAL policy that you would recommend to help an economy that is in a recession. You should not choose a monetary policy (i.e. interest rate manipulation, selling of bonds, or printing of money).

describe how your policy would help increase aggregate demand. That is, does it increase C, I, G, or X?

describe what would happen to prices (i.e. inflation).

You may use either the Modern Keynesian model or the Classical Model to conduct your analysis. Just be sure to note which one you are using.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M924703

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