Suppose that the Fed is not worried about inflation, but is convinced that unemployment is too high.

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Suppose that the Fed is not worried about inflation, but is convinced that unemployment is too high. Use the IS-LM model to explain what actions the Fed is likely to take to ensure that very little private sector spending is crowded out by a tax cut aimed at reducing unemployment.
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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