ECON: MACRO4
4th Edition
ISBN: 9781305436862
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 12, Problem 2.3PA
To determine
Difference among annually balanced budget, cyclically balanced budget and functional finance and their effect on economic fluctuations.
Concept Introduction: There are three different budget philosophies: Annually balanced, cyclically balanced budget and functional finance.
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Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:
Use the Feynman technique throughout. Assume that you’reexplaining the answer to someone who doesn’t know the topic at all:
4. Draw a Keynesian AD curve in P – Y space and list the shift factors that will shift theKeynesian AD curve upward and to the right. Draw a separate Classical AD curve in P – Yspace and list the shift factors that will shift the Classical AD curve upward and to the right.
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