Question
Consider a contractionary fiscal policy. Conduct a comprehensive analysis and provide the impacts on Prices, real interest rate and Y, Consumption, Investment in the short
Consider a contractionary fiscal policy. Conduct a comprehensive analysis and provide the impacts on Prices, real interest rate and Y, Consumption, Investment in the short run and long run. Assume the very short run where the SRAS is horizontal. First analyze for short run, then extend into long run. Provide step by step explanation, clearly explaining why, if you indicate a shift or transition. Provide some examples of contractionary fiscal policy from any PIC.
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
