Answer to Question #20872 in Macroeconomics for David Dasher
Include the following concepts in your discussion:
• Demand and supply of money
• Income and Productivity
• Interest rates
• Okun’s law
• The Phillips curve
• Government spending
• Aggregate supply
• Aggregate demand
• Long run and short run
• Costs of inflation
• The multiplier and the tax multiplier
• An open vs. a closed economy
• The idea of tax rebates to stimulate the economy
Part 2: Assume the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this change any policy changes
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