Suppose that a federal election is called at a timewhen the economy is experiencing a recessionarg gap and there is a budget deficit. The leader of party A promises to balance the budget bg slashing government spendinb. The leader of party B promises to stimulate the economy with a tax decrease.

1

The effect of Party A proposed policy on

Level of GDP ?

Level of NTR ?

Level of unemployment ?

The budget deficit ?

Price level ?

The effect of party B proposed policy on

Leve, ov GDL ?

Level of NTR ?

Unemployment ?

Budet defeict ?

Price level ?

Thank you