Business, 24.01.2020 04:31 Demarcusclincy
In the classical model, neither fiscal nor monetary policy can increase gdp but will only cause inflation. ( using an aggregate demand and short run aggregate supply graph (ad-sas) for each one. explain why the curves shift (if they do) and the effect on gdp, unemployment, and prices/inflation.)
a. what assumptions do classical economists make?
b. explain why fiscal policy will not increase gdp.
c. explain why expansionary monetary policy will not increase gdp. what is meant by money is neutral?
Answers: 3
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