Stabilization policy, Stabilization Policy- Graph an AD/AS

Stabilization policy

Reference no: EM13695952

Stabilization Policy

a. Graph an AD/AS model with sticky wages.

b. Show graphically and explain with words how the U.S. government with the help of the Federal Reserve could decrease taxes while keeping the economy at full employment without causing inflation.

c. If they pursue this policy what happens to investment in the economy?

Reference no: EM13695952

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