Propose the Fiscal Policy needed to fix this economy.

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter11: Fiscal Policy And The Federal Budget
Section: Chapter Questions
Problem 18QP
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1- Identify the graph if it is cost-push or demand-pull inflation.
2- Propose the Fiscal Policy needed to fix this economy.
Transcribed Image Text:1- Identify the graph if it is cost-push or demand-pull inflation. 2- Propose the Fiscal Policy needed to fix this economy.
Figure-4
Full Employment
AS2
Price Level $
AS1
P2
P1
AD1
Q2
Real GDP
1.
Transcribed Image Text:Figure-4 Full Employment AS2 Price Level $ AS1 P2 P1 AD1 Q2 Real GDP 1.
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