In 2008 the Chinese government conducted an expansionary fiscal
policy. Apply such a policy to the AD-AS model and answer the
following questions.
What is an expansionary fiscal policy?
How would such a policy affect the aggregate demand curve, the
short-run aggregate supply curve, and the long-run aggregate supply
curve?
Following the implementation of such a policy, what happens to
the real GDP, the price, and the unemployment in the short run? And
what happens to them once the price...