Suppose a Country Is Experiencing a Situation Where Output Is

question 74

Essay

Suppose a country is experiencing a situation where output is above the full employment level of output and a trade deficit.Further assume that the policy makers' goals are to achieve 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.

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Definitions:

Geographic Location

The specific physical location of a place on the Earth's surface.

Functional Groupings

The organization of objects, individuals, or data based on their characteristics or roles to achieve efficiency or categorization.

Business Activities

Operations, tasks, and work performed by a company to generate profits, including production, sales, and distribution among others.

Organizational Groupings

The manner in which a company or organization segments and organizes its internal structures or departments to improve efficiency and effectiveness.