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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Cambridge International AS And A Level Economics Coursebook

ISBN: 9781107679511

3rd Edition

Authors: Colin Bamford, Susan Grant

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Question Posted: Sep 14, 2021 01:18 AM

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a. Explain how the impact of the Keynesian multiplier process will change if a free-market closed economy

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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

Cambridge International AS And A Level Economics Coursebook

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