What fiscal policy actions would you recommend in the following instances.' a. The economy begins at potential
Question:
a. The economy begins at potential output, but foreign economies slow dramatically.
b. The economy has been operating above potential output and inflationary pressures rise.
c. A new technology is invented that significantly raises potential output.
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a The slowing of foreign economies will reduce exports shifting the AD curve to the left by a multip...View the full answer
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