`A Shock To Aggregate Supply`-Essay
What is meant by `A Shock To Aggregate Supply`? How can economic policy be implemented to counter such a shock? PART `B`: How does government expenditure and taxation affect the multiplier in the standard Keynesian model?
The essay has has 2 parts which are as follows;
PART `A`: What is meant by `A Shock To Aggregate Supply`? How can economic policy be implemented to counter such a shock?
PART `B`: How does government expenditure and taxation affect the multiplier in the standard Keynesian model? What would happen if the Government increased both taxes and the expenditures by the same amount?
Each part should be approx 800 words and the essay MUST include `Diagrams` and `Mathematical Formulations`. the core text used in the university is; `Mankiw, N.G., Macroeconomics, 6th Edition, Worth Publishers, 2006.`
All the referencing should be done from the books, mainly the core text, and NO internet referencing please
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