Question: Can I get an answer with explanations? 2) A small open economy with a floating exchange rate is in recession with balanced trade. If policymakers

Can I get an answer with explanations?

2) A small open economy with a floating exchange rate is in recession with balanced trade. If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they choose? Use a graph and identify the effects of each policy

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