Re: Gokhale sample paper 3 discussion
Posted by econ14 on Jun 07, 2014; 12:54pm
URL: http://discussion-forum.276.s1.nabble.com/Gokhale-sample-paper-3-discussion-tp7591759p7591796.html
@ Anjali ...if there is a fiscal expansion AD will shift rightward (fiscal policy multiplier times change in G)....but the confusion is because in this case when prices rise and economy moves along AD curve there is a complete crowding out ..........so although AD shifts impact of fiscal policy is zero........ so conclusion is....
.............?????
URL: http://discussion-forum.276.s1.nabble.com/Gokhale-sample-paper-3-discussion-tp7591759p7591796.html
@ Anjali ...if there is a fiscal expansion AD will shift rightward (fiscal policy multiplier times change in G)....but the confusion is because in this case when prices rise and economy moves along AD curve there is a complete crowding out ..........so although AD shifts impact of fiscal policy is zero........ so conclusion is....
.............?????
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