Mundell-Fleming: הנחות, Mundell-Fleming exchange rate — True or False?
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Mundell-Fleming: הנחות, Mundell-Fleming exchange rate — True or False?
If the economy were at full employment (vertical supply), a fiscal expansion would raise real output by the same amount as in an economy with unemployment. A) True B) False C) Can't be determined Answer: FALSE False. At full employment supply is vertical — a demand expansion translates mainly into a rise in prices (inflation) and not into ...
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