The economy is in a boom and the inflationary gap is large. a. Describe the discretionary and
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a. Describe the discretionary and automatic fiscal policy actions that might occur.
b. Describe a discretionary fiscal restraint package that could be used that would not produce serious negative supply-side effects.
c. Explain the risks of discretionary fiscal policy in this situation.
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Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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