4. Suppose that survey measures of business confidence indicate that a wave of pessimism about Canada's economic
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4. Suppose that survey measures of business confidence indicate that a wave of pessimism about Canada's economic prospects is sweeping the country. As a con- sequence, firms announce their intention to delay new spending on plants and equipment. If policymakers do nothing, what will happen to aggregate demand? What should the Bank of Canada do if it wants to sta- bilize aggregate demand? If the Bank of Canada does nothing, what might Parliament do to stabilize aggre- gate demand?
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Related Book For
Principles Of Macroeconomics
ISBN: 9780176591977
7th Canadian Edition
Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie
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