23 Jul EXPLAIN THE EFFECT ON THE FISCAL BUDGET AND SHOW THE EFFECT ON THE MONEY MARKET AND THE INVESTMENT MARKET.
The re Show more The current year as Year A Full employment level of Real GDP The current level of Real GDP The recessionary or inflationary gap Natural Rate of Unemployment Use Aggregate Demand and Aggregate Supply to show this economy. Suggest and show the results of a Fiscal Policy action that will bring this economy to full employment level of Real GDP. Explain the effect on the fiscal budget and show the effect on the Money Market and the Investment Market. Suggest and show a Monetary Policy action that would restore the original equilibrium level of interest. Also show the result of this Monetary Policy action on the Investment Market and the Goods and Services (AS/AD) Market. Show less
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