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Countercyclical policy in recessions has typically involved increasing in incentives for investments, often through increases in the investment tax credit. In a 2 to 4 page paper, discuss how a firm's behavior at the beginning of the future recession might be affected by beliefs that the government may take these actions to reduce the cost of investment. What effect would this have on the behavior of real GDP?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91228512

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