Given an economy operating in a state of long-run equilibrium. In this economy, the government announced a deal to buy new fighter planes and missiles in the amount of $200 billion
a. Show the effect of this economic policy on the whole economy in words and graph using AD-AS model.
b. What should governments do to stabilize the economy using the tax fiscal policy instrument, indicate what should be done? Show the effect of your suggested policy in words and graph of the AD-AS model?
PLLZZ HELP !!
Macroeconomics Q .. Need Help ASAP Watch
- Thread Starter
- 28-11-2010 16:41
- PS Helper
- 28-11-2010 21:29
What don't you get.