Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 15, Problem 15E
To determine
To explain:
The statement that states if the government can help the economy in adjusting the equilibrium if the economy faces disequilibrium in the markets of labor and goods.
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True or False: Economists today believe monetary and fiscal policy can help reduce the magnitude of fluctuations in real GDP.
What happens when firms and workers underestimate future prices in the economy? Explain the answer while focusing on what would happen to actual output as opposed to the expected potential output.
Question 3:
Briefly explain the two states of disequilibrium in economy.
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