Analyze how the fiscal policy that Congress has enacted affects U.S. economic growth, unemployment, Federal budget deficits,
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Question:
Analyze how the fiscal policy that Congress has enacted affects U.S. economic growth,
unemployment, Federal budget deficits, and inflation in the context of basic macroeconomic
model. Assume initially that actual output is ten percent below potential output and show both the
short run and long run adjustment in a well-labeled aggregate demand - aggregate supply graph.
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