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Suppose an economy is hit by a recession and people's income fall. Show graphically using AD-AS model how the price level and output are affected
Suppose an economy is hit by a recession and people's income fall.
- Show graphically using AD-AS model how the price level and output are affected in the short-run.
- Can the government use fiscal policy to offset the effects on price level and output, explain?
Suppose an economy is hit by a flood and its natural resources decreases.
- Show graphically using AD-AS model how the price level and output are affected in the short-run.
- Can the government use monetary policy to offset the effects on price level and output, explain?
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Economics
Authors: David Colander
7th Edition
0073402869, 9780073402864
