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Business, 03.04.2020 16:09 widnickab

G The fiscal government want to support the economy and entertains two different measures: (A) Hand out transfers (i. e., tax reductions) to consumers and businesses or (B) buy breathalyzers and increase capacity of hospitals. Importantly, the second measure would allow the government to lift some of the restrictions on businesses and workers. Explain the effects of the policies (A) and (B) on output, inflation and unemployment. What type of government policy are (A) and (B)?

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