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The government considers increasing government expenditures G to help the economy to get out of the recession. Is such policy intervention feasible in the context

The government considers increasing government expenditures G to help the economy to get out of the recession. Is such policy intervention feasible in the context of the monetary intertemporal model? Is it desirable? In other words, is active stabilization policy welfare improving? Explain your response and provide a graphical illustration.


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