Demonstrate the effect of the following on output and the price level in the AS/AD model: a.
Question:
Demonstrate the effect of the following on output and the price level in the AS/AD model:
a. Full crowding out.
b. Partial crowding out.
c. Full crowding out and private investment is more productive than government investment.
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a With full crowding out the AD curve shifts back to its original position and fiscal policy has no ...View the full answer
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