(a) Suppose the government of a country has run large budget deficits for several years in attempt to increase output. Explain with a diagram of the money market why this policy may not have its desired effect.

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Q: pIivate investment

A: Government's fiscal policy leads the situation of crowding out.

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A:

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A: Marginal revenue product = (price* marginal product)

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Q: In Wonderland production per worker (y) depends on capital per worker() such the y=10vk. Every year…

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Q: 1. Introduction of human activities. 2. Problems of human activities. 3. Scope of human activities.

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