Stabilization policy- graph an adas model with sticky wages, Microeconomics

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Stabilization policy- graph an adas model with sticky wages

Stabilization Policy

a. Graph an AD/AS model with sticky wages.

b. Show graphically and explain with words how the U.S. government with the help of the Federal Reserve could decrease taxes while keeping the economy at full employment without causing inflation.

c. If they pursue this policy what happens to investment in the economy?

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Microeconomics: Stabilization policy- graph an adas model with sticky wages

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Microeconomics: Stabilization policy- graph an adas model with sticky wages

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