Suppose South Africans start to save more. This will result in a (4.1) shift of the (4.2) curve. The equilibrium level of output will (4.3) and the equilibrium price level will (4.4). The level of unemployment in the economy has (4.5). (4.6) fiscal policy can be implemented by the South African government to reduce unemployment. This involves (4.7) government expenditure and (4.8) tax. The effect of this fiscal policy is that the (4.9) curve will shift to the (4.10).

Suppose South Africans start to save more. This will result in a (4.1) shift of the (4.2) curve. The equilibrium level of output will (4.3) and the equilibrium price level will (4.4). The level of unemployment in the economy has (4.5). (4.6) fiscal policy can be implemented by the South African government to reduce unemployment. This involves (4.7) government expenditure and (4.8) tax. The effect of this fiscal policy is that the (4.9) curve will shift to the (4.10).

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 5SQP

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