Using the AD/AS model, explain how each of the following hypothetical Government policies would affect output and prices in Kenya: i. A tax credit on education, training and skills development ii. A tax increase on imports of crude petroleum oil

Using the AD/AS model, explain how each of the following hypothetical Government policies would affect output and prices in Kenya: i. A tax credit on education, training and skills development ii. A tax increase on imports of crude petroleum oil

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 5WNG

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Question

Answer ii

Using the AD/AS model, explain how each of the following hypothetical Government
policies would affect output and prices in Kenya:
i.
A tax credit on education, training and skills development
ii.
A tax increase on imports of crude petroleum oil
iii.
Intensive campaign to make the business environment more friendly.

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