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Explain side effects graphically as well as theoretically

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Reference no: EM132498016

Use the AD-AS model to illustrate and explain how the authorities can use monetary and fiscal policies to stimulate the economy. What side effects would such policies have on the general price level and total income of an economy?

Explain the side effects graphically as well as theoretically. Provide one (1) policy instrument for both fiscal and monetary authorities used in stimulating economic growth. [Tip: Illustrate the impact with a normal/short-run AD-AS curve(s)].

Reference no: EM132498016

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