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Q2a: Illustrate the impact of a tax cut using aggregate demand and aggregate supply analysis when the economy is operating above full employment. Is this
Q2a: Illustrate the impact of a tax cut using aggregate demand and aggregate supply analysis when the economy is operating above full employment. Is this a wise policy? Why or Why not? Q3: During the Great Depression in Canada in 1933, the price level fell, real GDP fell, and unemployment reached almost 20 percent. Investment fell, and the money supply fell. What would have been the appropriate monetary policy response in 1933?
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