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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 22
Supply-Side Effects of Fiscal Policy
Use the following information to work the Problem
Suppose that in the United States, investment is $1,600 billion, saving is $1,400 billion, government expenditure on goods and services is $1,500 billion, exports are $2,000 billion, and imports are $2,500 billion.
a. Is the government's budget exerting a positive or negative impact on investment?
b. What fiscal policy action might increase investment and speed economic growthExplain how the policy action would work.
Use the following information to work the Problem
Suppose that in the United States, investment is $1,600 billion, saving is $1,400 billion, government expenditure on goods and services is $1,500 billion, exports are $2,000 billion, and imports are $2,500 billion.
a. Is the government's budget exerting a positive or negative impact on investment?
b. What fiscal policy action might increase investment and speed economic growthExplain how the policy action would work.
Explanation
Verified
Verified
(a) The government budget is exerting a ...
Macroeconomics 11th Edition by Michael Parkin
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