Assume that output began at its natural level. By using AD-AS (upward sloping) and Phillips curves, analyze the short and long run effects for each of these situations: a) The government decreases the investment tax credit in order to discourage the investment. b) The Government increases the assistance to low income family through various stimulus package due to the impact of Covid 19 Pandemic on this groups' income. c) The evolution of technological advancement brings about great impact to the economy.

Assume that output began at its natural level. By using AD-AS (upward sloping) and Phillips curves, analyze the short and long run effects for each of these situations: a) The government decreases the investment tax credit in order to discourage the investment. b) The Government increases the assistance to low income family through various stimulus package due to the impact of Covid 19 Pandemic on this groups' income. c) The evolution of technological advancement brings about great impact to the economy.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 5E

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