In an effort to boost output, the government passes a large fiscal stimulus that raises government purchases

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In an effort to boost output, the government passes a large fiscal stimulus that raises government purchases by $1 trillion. Use the AD-AS framework to predict how prices and output change in the very short run, in the short run, in the medium run, and in the long run.

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Principles Of Economics

ISBN: 9781319330156,9781319419769

2nd Edition

Authors: Betsey Stevenson, Justin Wolfers

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