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What is the impact of a permanent fiscal expansion on aggregate output,nominal exchange rate,real exchange rate,and domesic prices in the short and long run under
What is the impact of a permanent fiscal expansion on aggregate output,nominal exchange rate,real exchange rate,and domesic prices in the short and long run under a. A floating exchange rate regime b. A fixed exchange rate regime
Assume that before the policy change: i)aggregate output is at full employment level and )nominal exchange rate is not expected to change in the future.
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