You are an economic advisor to the president. You observe an increase in exports. Assume the economy was operating at the full employment level of real GDP prior to the increase in exports
Describe the state of the economy and advise the president on the appropriate policy action by completing the following sentences
a. The increase in exports will lead to Cick to select) in net exports and in turn ((Click to select) in aggregate demand As a result, real GDP will (Click to select)
b. The problem that this event will cause is (Click to select)
c. Appropriate (Click to policy actions would include (Ckk ее taxes and/or ci k se ; government purchases.
d. These actions will smooth out the business cycle by (cick to selct) actual real GDP back toward full-employment GDP
Answers: 1
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You are an economic advisor to the president. You observe an increase in exports. Assume the economy...
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