naomihiggins4033
06.12.2019 •
Business
In an article from august 2014, ‘the fall of france’, paul krugman criticizes the austerity policy implemented in france.
use what you have learned about the fiscal multiplier to explain why, in krugman’s opinion, fiscal austerity in france (and more generally in europe) would fail (explain carefully what you think krugman means by ‘fail’).
question 2: what happens when there is a positive shock to aggregate demand from a boom in the construction of new housing? explain using the multiplier diagram and the phillips curve diagram.
what would you expect the central bank to do?
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