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Difference between recessionary gap and inflationary gap

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Reference no: EM131901913

1. Does it appear to you that the US economy is likely to be relatively stable or relatively unstable? Which component of spending is most (least) likely to contribute to overall instability: consumption, investment, government, exports, or imports?

2. Explain the difference between recessionary gap and inflationary gap. Discuss how a "conservative" and a "liberal" might differ in the types of policies they advocate to counteract a recessionary gap.

Reference no: EM131901913

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