For a hypothetical economy in the growth portion of its business cycle, why might you want...
For a hypothetical economy in the growth portion of its business cycle, why might you want to implement a fiscal policy which would contract the rate of growth in the economy?
Homework Answers
A contractionary fiscal policy in the market will be implemented by the government in the market because the employee would be overheating i.e. the inflation in the market are increasing.
this will bring the economy back at the potential level of and check uncontrolled price increase in the market.
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For a hypothetical economy in the growth portion of its business
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