Solution-Practice to limit the correct predictions of the

Practice to limit the correct predictions of the model

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Reference no: EM131961824

It is 2009 and the US economy is mired in the Great Recession, the Fed has been taking action to stimulate the economy, and Congress just passed the stimulus bill which President Obama signed into law. It allowed for tax cuts and increases in government spending. Explain clearly the impact of the joint actions taken by the Fed and the government on US output in the short run using the IS-LM-FX model. Point out two problems with these policies that perhaps might have panned out in practice to limit the correct predictions of the model.

Reference no: EM131961824

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Practice to limit the correct predictions of the model

Reference no: EM131961824

Reference no: EM131961824

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