Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 10, Problem 6RQ
To determine
The impact of a temporary increase in the amount of government purchases on the labor market, the output, real rate of interest and the general price level as suggested by Classical economists.
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Explain how Classical and Keynesian economists view the use of active government to maintain full employment.
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