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Describe the state of the economy and advise the president on the appropriate policy action by completing the following sentences. a. The increase in exports
Describe the state of the economy and advise the president on the appropriate policy action by completing the following sentences. a. The increase in exports will lead to (Click to select) in net exports and in turn (Click to select) in aggregate demand. As a result, real GDP will (Click to select) . b. The problem that this event will cause is (Click to select) . c. Appropriate (Click to select) policy actions would include (Click to select) taxes and/or (Click to select) government purchases. d. These actions will smooth out the business cycle by (Click to select) actual real GDP back toward full-employment GDP
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