The International Monetary Fund (IMF) is an organization of 189 countries that is focused on promoting growth
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The International Monetary Fund (IMF) is an organization of 189 countries that is focused on promoting growth and reducing poverty. An article in the Wall Street Journal in 2019 discussed an IMF proposal: “In its annual report on global fiscal policies, the IMF singled out Germany, Korea, and Australia as places where fiscal stimulus could make sense.”
a. What does the article mean by “fiscal stimulus”? What actions would these countries take if they decided to engage in a policy of fiscal stimulus?
b. Draw an aggregate demand and aggregate supply graph that shows the effect on the Australian economy of a policy of fiscal stimulus. Briefly explain what your graph shows.
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Definition Fiscal stimulus refers to a set of policies implemented by a government aimed at boosting ...View the full answer
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