Describe the effect that each of the policies will have on, Ask an Expert

Economics

With a federal budget deficit of nearly $350 billion, fiscal authorities are considering the following policy actions to address the existing economic problems of high unemployment, high inflation and slow GDP growth.

Policy 1: Decrease government expenditures.
Policy 2: Increase in personal income taxes
Policy 3: Increase business taxes and regulations.

Describe the effect that each of the policies will have on the economy and demonstrate each on an individual AD-AS graph. Be sure to address the effect on output, employment and price level in your descriptions.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9689480

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