Tuesday, January 13, 2009

Unit 2: Fiscal policy in Germany

This BBC clip (and report) reports an expansionary fiscal policy in germany

http://news.bbc.co.uk/1/hi/business/7825609.stm video
http://news.bbc.co.uk/1/hi/business/7825513.stm

a) Using an AD/AS diagram, explain how the stimulus package should effect the German economy
b) Explain why this may not be the actual outcome

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