Contractionary fiscal policy

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Reference no: EM13912480

Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below and justify your answer.

a) A recession.

b) A stock market collapse that hurts consumer and business confidence.

c) Extremely rapid growth of exports.

d) Rising inflation.

e) A rise in the natural rate of unemployment.

f) A rise in oil prices.

Reference no: EM13912480

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