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Suppose a fall in government spendings generated by a ) - decreasing bond sales to the public, b ) - reducing the quantity of money.
Suppose a fall in government spendings generated by a decreasing bond sales to the
public, b reducing the quantity of money. Analyze the effects of these both policy
applications on output, employment, real wage, nominal wage, general price level, real
interest rate and aggregate demand. Show only by the aid of diagrams.
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