Question
Assume an initial situation in country AAA a which the economy is performing at its potential output. State in words and graph your fiscal policy
Assume an initial situation in country AAA a which the economy is performing at its potential output. State in words and graph your fiscal policy recommendations country AAA (using spending and taxation) in the following scenarios.
a. Due to COVIT 19 the economy experiences a serious decline in consumer and investor spending.
b. Country AAA experiences a positive AD shock and country AAA is aiming for output stability at Y*.
c. Country AAA experiences a high increase in factor prices, including gas, and country AAA is aiming for output stability at Y*.
please write the answer in the computer do not take a picture of the answers
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