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Category: Economics
Explain the different objectives of (long-run) growth policy versus (short-run) stabilization policy.
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Category: Economics
Given what you now know, do you think it was a good idea for the United States to adopt a policy mix of tight money and large government budget deficits in the early 1980s? Why or why not? What were the benefits and costs of reversing that policy mix in the 1990s?
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Category: Economics
In 2017, Congress passed the tax cuts that President Trump advocated. What effect did this policy likely have on the U.S. trade deficit? Why?
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Category: Economics
Explain why a currency depreciation leads to an improvement in a country's trade balance.
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Category: Economics
Explain why American fiscal policy is less powerful and American monetary policy is more powerful than indicated in the closed-economy model described earlier in this book.

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