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In the short-run, the effect of an expansionary fiscal policy
In the short-run, the effect of an expansionary fiscal policy on the output level is very large when money demand is relatively insensitive to the changes in the interest rate. Do you agree or disagre …
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Assume an economy that is operating above full employment
Assume an economy that is operating above full employment.What would happen to the economy if the government did nothing to correct the economy during this inflated state (how would AD and SRAS move)? …
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ECO 202 - When thinking on Monetary policy
"When thinking on Monetary policy as an action taken by the Fed to influence the level of real GDP and the Fed wanting to increase the money supply", What three tools could the Fed use to achieve this …
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ECON 022 - China's rapid economic growth during the past several decades
One explanation for China's rapid economic growth during the past several decades is its expansion of policies that encourage "technology transfer." By this, we mean policies - such as opening up to i …
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ECON 102 - Under the conditions described above, what open market
The quantity of exchange: MV = PY is true by definition. Now suppose that the money supply (M) is initially at $100 while velocity (V) is constant at 5 and initial nominal GDP (PY) at $500. Finally, …
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