Question: Question 10. QUESTION 10 18 points Save Answer Suppose output drops in a classical economy without Ricardian Equivalence and policymakers try to use fiscal policy

Question 10.

QUESTION 10 18 points Save Answer Suppose output drops in a classical economy without Ricardian Equivalence and policymakers try to use fiscal policy targeted at households to stimulate the economy. What happens in response to the policy to the observed values of each the following? Options are same, increase, decrease, or depends (please use exactly these words, 3 points each). Output Employment Consumption Price level Real interest rate Investment

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