ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The economy of a hypothetical country has been stable for two or three years with very low
- What kind of economic gap will start to occur (inflationary or recessionary)?
- What kind of fiscal policy might be helpful to stabilize the economy (expansionary or contractionary)?
- What specific fiscal policy tools does the government have available, and how should these tools be utilized to maximize their effect in stabilizing the economy?
- What would be the likely impact on the government budget and national debt of the use of these fiscal policy tools?
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