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Offshore outsourcing and imported durable goods

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Reference no: EM132066167

a. How cutting offshore outsourcing and imported durable goods will affect the domestic investment, domestic interest rate, NCO, exchange rate and net export in our country?

b. What do you think will happen to real GDP, unemployment, and the price level in our country?

c. Is there any chance for this new policy to trigger stagflation in our economy? In case, if that happens, what kind of coordinated fiscal and monetary policy would be recommended to change the situation?

Reference no: EM132066167

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