Chapter10: Income And Expenditures Equilibrium
Section: Chapter Questions
Problem 17E
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Question
Consider a macro-economy that was initially at equilibrium. Using an aggregate demand and
of the following events upon the economy:
(a) The imposition of a carbon tax upon local big polluting companies;
(b) An appreciation in the foreign exchange rate value of the economy’s currency;
(c) A major trading partner’s economy fall into recession;
(d) The country’s main exports fall in price while the goods the country imports from abroad rise in price
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