What effect a contractiory fiscal policy would have on price

Reference no: EM13220060

Suppose we start at a position where we are at full employment. Explain what effect a contractionary fiscal policy would have on the price level and real GDP starting from full employment equilibrium. What would the effect be if we had and expansionary fiscal policy.

Reference no: EM13220060

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What effect a contractiory fiscal policy would have on price : Suppose we start at a position where we are at full employment. Explain what effect a contractiory fiscal policy would have on the price level and real GDP starting from full employment equilibrium. What would the effect be if we had and expansionary..

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