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Implementing this fiscal policy will lead to a real GDP of $41.29 billion, which is close to the economy's long-run potential output while the budget deficit remained constant at 1.81 percent of the GDP. This decision has also put the president back into good favor, as his popularity increased from 2...
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(2) Inflation; which is a continual rise in the price level. (3) Potential output; which is the highest amount of output and economy can produce from the existing production function and the existing resources. (4) Multiplier effect; which is the amplification of initial changes in spending.
I can apply what I have learned from this simulation while participating as a member of my plant's budget team in my workplace...
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