ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Fiscal Policy and Money Market
Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the …
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Actual Budget, Percent of Cyclically-Adjusted Budget, Percent GDP (-deficits, +surpluses) Year 1998 e 1999 -3 2000 -5 2001 -2 2002 +2 of GDP (-deficits, +surpluses) 0 0 -2 -2 +1 Refer to the data for a fictional economy. The changes in the budget conditions between 1998 and 1999 best reflect O demand-pull inflation. O an expansionary fiscal policy. O a recession. O a contractionary fiscal policy.
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Transcribed Image Text:Actual Budget, Percent of Cyclically-Adjusted Budget, Percent GDP (-deficits, +surpluses) Year 1998 e 1999 -3 2000 -5 2001 -2 2002 +2 of GDP (-deficits, +surpluses) 0 0 -2 -2 +1 Refer to the data for a fictional economy. The changes in the budget conditions between 1998 and 1999 best reflect O demand-pull inflation. O an expansionary fiscal policy. O a recession. O a contractionary fiscal policy.
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