Question
Consider a decrease in government spending in a closed economy. Assume that prices are fixed in the short run. (a) Will the interest rate increase
Consider a decrease in government spending in a closed economy. Assume that prices are fixed in the short run.
(a) Will the interest rate increase in the short run?
(b) Will output increase in the short-run?
(c) Will the price level increase in the transition from the short run to the long run (absent any policy response)?
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Slavery And American Economic Development
Authors: Gavin Wright
1st Edition
0807152285, 9780807152287
