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Suppose a Country's Output Is Below the Policy Makers' Desired

question 30

Essay

Suppose a country's output is below the policy makers' desired level of output and is experiencing a trade surplus.Assume that the policy makers' goals are to achieve the desired level of output (i.e.,full employment output)and balanced trade.Given this information,what type of exchange rate and / or fiscal policy can be used to achieve simultaneously these two goals? Explain.


Definitions:

Environmental Justice

The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

Modern Environmental Movement

A diverse scientific, social, and political movement for addressing environmental issues and promoting sustainability.

Exxon Valdez

An oil tanker whose 1989 spill off the coast of Alaska is considered one of the worst environmental disasters, resulting in massive oil pollution.

Nitrogen

Nitrogen is a chemical element with the symbol N and atomic number 7, making up about 78% of the Earth’s atmosphere and essential for all living organisms.

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