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Impact of an expansionary fiscal policy

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Reference no: EM131434084

1. Think about an economy that is open to trade with the rest of the world, and verbally discuss the impact of an expansionary fiscal policy.

2. Show these effects graphically using both an AD-AS graph and a graph of the money market.

3. What is the name of the curve that depicts the inverse relationship between inflation and unemployment? Changes to the economy have to be driven by changes to AD/AS(circle the right answer) for this inverse relationship to hold.

Reference no: EM131434084

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