Economics

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January 7th, 2018

Economics 201 questions1)active policy intervention in response to a one period reduction in consumption spending would-decrease transfer payments-stabilise the economy-create budget surplus-destabilise the economy-Reduce the money supply2) If policy makers want to get to the price level quickly back to its original level following an ol price increase supply shock, they need to-combine a tax increase with an increase in government spending of equal magnitude-decrease taxes-increase government transfer payments-levy a tarriff on imported oil-apply restrictive monetary policy

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