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Business, 27.03.2020 06:01 alaynagrace1111

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 decrease in gross investment will lead to 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 government purchases. 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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