What effects does a temporary increase in government purchases have on the labor market, according to the

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What effects does a temporary increase in government purchases have on the labor market, according to the classical theory? What effects does it have on output, the real interest rate, and the price level? According to classical economists, should fiscal policy be used to smooth out the business cycle? Why or why not?

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Macroeconomics

ISBN: 126168

8th Edition

Authors: Abel, Andrew B;Bernanke, Ben S;Croushore, Dean

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