[20.3] Suppose the economy is experiencing a recession. The output gap is hovering at −7%, causing higher than normal unemployment.

Using the Fed model, complete the following passages to compare and contrast how monetary policy and fiscal policy can impact the economy.

options for a: government purchases/federal funds rate

option for b: upward/download, right/left, unemployment/output

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04-12-2022
Business

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[20.3] Suppose the economy is experiencing a recession. The output gap is hovering at −7%, causing higher than normal unemployment.

Using the Fed model, complete the following passages to compare and contrast how monetary policy and fiscal policy can impact the economy.

options for a: government purchases/federal funds rate

option for b: upward/download, right/left, unemployment/output

Sagot :

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