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Demand-side and Supply-side policies

Demand-side and Supply-side policies. Demand-side policies. Based on the idea that short-term fluctuations of Real GDP are due to actions of firms and consumers that affect AD, causing inflationary and recessionary gaps. Objectives: bring the AD to the FE level of Real GDP.

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Fiscal policy fp - PowerPoint PPT Presentation

Demand-side and Supply-side policies