Compare an economy with a vertical (E R U) curve with an otherwise identical economy with a
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Compare an economy with a vertical \(E R U\) curve with an otherwise identical economy with a downward-sloping \(E R U\) curve. Briefly explain how these economies differ. Consider a government facing an upcoming election. Does a downward-sloping \(E R U\) curve affect the policy maker's incentive to be fiscally disciplined ahead of an election?
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Macroeconomics Institutions Instability And The Financial System
ISBN: 9780199655793
1st Edition
Authors: Wendy Carlin, David Soskice
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