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Government multiplier during an economic boom

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1. What did China's government do in response to the Global Financial Crisis in 2018? Explain? What about the impact of the automatic stabilisers?

2. During booms, capacity utilization can be at high levels. Consequently, fiscal expansion during an economic boom can crowd out private spending, particularly investment. Explain? What does the imply about the size of the government multiplier during an economic boom?

Reference no: EM132158725

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