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7. (a) Briefly explain the TWO types of fiscal policy (b) Suppose the government adopts a fiscal policy aiming to increase the GDP by 10
7. (a) Briefly explain the TWO types of fiscal policy (b) Suppose the government adopts a fiscal policy aiming to increase the GDP by 10 billion in an economy with 0.9 MPC. How can this be achieved, numerically, if the government plans to alter: 1. the government spending? 2. the taxation? 3. both of the above
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