Government increases subsidies to firms

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Reference no: EM13838194

1. Predict what will happen to the economy in the short run if household debt rises and at the same time the government increases subsidies to firms.

Price level will ____________________

Real GDP will _____________________

Unemployment rate will ___________________________

2. Predict what will happen to the economy in the short run if there is an increase in taxes and at the same time there is an increase in tax rates.

Price level will ____________________

Real GDP will _____________________

Unemployment rate will ___________________________

Reference no: EM13838194

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