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Government and federal reserve

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1. Describe how a policy by the government and Federal Reserve of NOT intervening in the case of a normal (non-financial-crisis) recession could lead to greater long-term economic growth. (2-4 sentences)

2. Explain why tax cuts to middle-income people, theoretically, would lead to greater economic growth than would tax cuts to higher-income people. (2-4 sentences)

Reference no: EM131428088

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