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Fiscal policy: the government manipulates its expenditure and taxes to reduce aggregate demand
Monetary policy: the government controls the amount of money supply in the economy to control inflation
Prices and income policy
Indexation: this is the linking of an economic variable such as wages and salaries to an index of inflation like the consumer price index. As the price index increases so does the variable simultaneously
Dana05 answered the question on August 15, 2019 at 13:55
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G = 100
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Money demand...(Solved)
The following equation describe a certain economy
C = 400+ 0.75T
I = 200 - 100r
T = 70 + 0.2Y
G = 100
Money supply = 4000
Money demand = 0.2Y – 10r
Find the values of Y, C, T, M and I
Date posted: August 14, 2019. Answers (1)
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