eco 372 week 2 DQ principles of macroeconomics Describe the short-run and long-run effects on real o

eco 372 week 2 DQ principles of macroeconomics
Describe the short-run and long-run effects on real output and the price level for each the following events. Assume the economy begins at short-run and long-run equilibrium. Justify your responses with reasoning.
1.    Import prices suddenly rise.
2.    Government institutes a significant reduction in taxes on production.
3.    People hold off on spending because they expect prices to fall.
4.    Government increases spending
Please answer the following questions:
 
1.    Explain the two reasons that new growth theory treats investment in capital and investment in technology differently.
2.    List five policies that encourage growth.

 

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