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Identify one fiscal policy tool that will solve the problem

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Reference no: EM132506666

Assume the United States is operating above full employment.

-Identify one fiscal policy tool that will solve the problem.

-Using a correctly drawn and labeled AD/AS graph and loanable funds graph, show and explain how the policy you identified in (a) will affect each of the following in the short-run:

-output and employment

-price level

-interest rates

-Explain how the policy you identified in (a) will affect each of the following:

-International value of the dollar

-American exports (based on the changing value of the dollar)

Reference no: EM132506666

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