Country X has the following economic data:
a. A federal funds rate of 6 percent
b. A GDP growt...
Social Studies, 09.04.2021 22:10 StupidFatChipmunk
Country X has the following economic data:
a. A federal funds rate of 6 percent
b. A GDP growth of 0.2 percent
c. An unemployment rate of 9.3 percent
d. A price level of 1.2 percent
e. The MPC is 0.9
f. The GDP gap is $200 billion
Prescribe a fiscal policy for country X that will remedy the economic problem facing this country. Your policy needs to be explicit as to the tools to be used and the effects of this policy. You need to include an AD/AS diagram of the above situation and an AD/AS diagram showing how things will change after the implementation of your policy. Also, use an AE diagram showing the initial situation. Lastly, you need to state how much money the government needs to spend to solve the problem.
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