Analyse the impact of these events on the price level and total output of an economy in
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Analyse the impact of these events on the price level and total output of an economy in the short term. If policymakers were to use monetary policy to actively stabilize the economy, in which direction should they move the money supply and interest rate and show the effects of these policies? Please discuss your answers with appropriate graphs.
(a) The government significantly decreases its expenditure on public goods.
(b) Enterprises are optimistic about the economy in the future.
(c) Foreigners increase their taste for domestically produced beef.
(d) The money wage rate rises.
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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