5) - Suppose a fall in government spendings generated by a)- decreasing bond sales to the...
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5) - Suppose a fall in government spendings generated by a)- decreasing bond sales to the public, b)- reducing the quantity of noney. Analyze the effects of these both policy applications on output, employment, real wage, nominal wage, general price level, real interest rate and aggregate demand. Show only by the aid of diagrams. (25 points) S= Supply of 2 anable Pads 5) - Suppose a fall in government spendings generated by a)- decreasing bond sales to the public, b)- reducing the quantity of noney. Analyze the effects of these both policy applications on output, employment, real wage, nominal wage, general price level, real interest rate and aggregate demand. Show only by the aid of diagrams. (25 points) S= Supply of 2 anable Pads
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To analyze the effects of decreasing bond sales to the public and reducing the quantity of money on various economic variables we will consider the aggregate demand and aggregate supply framework We w... View the full answer
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