1. Assume the economy starts at full employment. Illustrate the short-run and long-run impact of an unexpected fiscal expansion using (a) The AD-AS model (b) the Phillips curve
1. Assume the economy starts at full employment. Illustrate the short-run and long-run impact of an unexpected fiscal expansion using (a) The AD-AS model (b) the Phillips curve
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 13CQ
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