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8pts Illustrate and explain how fiscal policy might be used to deal with the crisis you...

8pts

Illustrate and explain how fiscal policy might be used to deal with the crisis you modelled in the previous question. Can fiscal policy do a good job of fixing the problem? What are some practical problems or consequences of implementing fiscal policy in this situation?

Previous Question

8pts by applying the AD-SAS-LAS model, model the short-run and long-run economic impacts of the current COVID-19 crisis, assuming no fiscal or monetary intervention. Are the predictions of your modelling exercise consistent with the economic outcomes we are currently observing?

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Expert Solution

Rahul Sunny answered 8 months ago
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