a. Explain how the impact of the Keynesian multiplier process will change if a free-market closed economy
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a. Explain how the impact of the Keynesian multiplier process will change if a free-market closed economy becomes a mixed economy with foreign trade.
b. Analyse how a change in the equilibrium level of income resulting from the multiplier process might lead to unemployment or inflation.
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1 The multiplier effect refers to the effect on national income and product of an exogenous increase in demand For example suppose that investment dem...View the full answer
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Related Book For
Cambridge International AS And A Level Economics Coursebook
ISBN: 9781107679511
3rd Edition
Authors: Colin Bamford, Susan Grant
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