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If every time real GDP exceeds potential GDP, contractionary policy is used and whenever real GDP is less than potential GDP, expansionary policy is ised. GDP equal potential GDP and then aggregate demand increase. As a consequence of this policy action taken, what would the results be...
Not sure if expansionary policy will decrease unemployment, or it would lower the price level from what it would otherwise be.
Associate a current event article which relates to government regulations or antitrust activities.
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Demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society's economic welfare.
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