Policy affect aggregate demand at current prices

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Q1. "Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the similar amount. Explain how will this combined tax-transfer policy affect aggregate demand at current prices?"

Q2. Calculate the real wage (W/P) the 1st month of the recession 12/07 also compares it to the last month of the recession 6/09. Illustrate what is the %change in the real wage during this most recent recession?

Reference no: EM1313566

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