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Describe and define the equilibrium in the short run

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Reference no: EM131895213

Assume you are a social planner who can control the fiscal policy.

  • What is fiscal policy?
  • Describe and define the equilibrium in the short run. Denote vertical and horizontal axis as well as each graph.
  • Assume that the household wealth rises while the price level is constant. Illustrate the result on the graph. Clearly show the changes in equilibrium.

Reference no: EM131895213

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