OUTPUT (Trillions of dollars) Suppose that in February the government undertakes the type of policy that is necessary to bring the economy back to the natural level of output in
the preceding scenario. In April 2023, U. S. imports increase because the United States has eliminated trade restrictions on Japanese goods. Because
of the
lags
associated with implementing monetary and fiscal policy, the impact of the government's new policy will likely
once the effects of the policy are fully realized.
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