Question: I must answer the question by using the Aggregate Demand (AD) and Aggregate Supply (AS) model and use the Dutch economy as the starting point

I must answer the question by using the Aggregate Demand (AD) and Aggregate Supply (AS) model and use the Dutch economy as the starting point for your analysis.

  • Describe recent changes in fiscal and monetary policies that are relevant to the Dutch economy.

  • Use an AD/AS model to explain how recentfiscalpolicy changes intend to stabilize theDutch economy and compare this with a 'do-nothing' approach.

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