Use the accompanying diagram to answer questions a and b. a. Starting from the initial equilibrium in

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Use the accompanying diagram to answer questions a and b.

Use the accompanying diagram to answer questions a and b. 164731

a. Starting from the initial equilibrium in the diagram, illustrate the case of a supply-side fiscal policy that left the price level unchanged.
b. Compared to your answer in a, when would a supply-side fiscal policy result in an increase in the pricelevel?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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