Discusss the effects to the equilibrium price level and gdp

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Q. Suppose the government decreases taxes by 20 percent. Discusss the effects to the equilibrium price level and GDP. Make sure to address consumption, disposable income, and aggregate demand in your answer.

Q. A bank finds that a certain area within a city contains many "risky" investments and therefore refuses to give loans to people who live and work in the area. Do you feel it is ethical for government to step in and ban such a practice? Why or why not? Explain.

Reference no: EM1365146

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