Business, 16.03.2020 19:22 craincrew5239

You are an economic advisor to the president. You observe a decrease in gross investment. Assume the economy was operating at the full-employment level of real GDP prior to the decrease in gross investment.

Describe the state of the economy and advise the president on the appropriate policy action by completing the following sentences

a. The increase in exports will lead to in net exports and in turn in aggregate demand As a result, real GDP will
b. The problem that this event will cause is
c. Appropriate policy actions would include taxes and or goverment purchase.
d. These actions will smooth out the business cycle by actual real GDP back toward full-employment GDP.

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You are an economic advisor to the president. You observe a decrease in gross investment. Assume the...

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