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7. Distinguish between fiscal policy and monetary policy. Explain the impact of automatic stabilizerson the economy. 8. What is the marginal propensity to consume? How

7. Distinguish between fiscal policy and monetary policy. Explain the impact of automatic stabilizerson the economy.

8. What is the marginal propensity to consume? How would it be expected to differ between highincome and low income individuals? What is its relationship to marginal propensity to save?

9. Explain how unemployment is measured and categorized. What statistical challenges are faced inmeasuring unemployment?

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