Answer:
Fiscal policy
Explanation:
In this scenario, the government of Ukanturk is applying fiscal policies to improve overall economic performance. Two major policies are applied to move and stabilise the economy; monetary policy and fiscal policy. Monetary policy is handled by the state bank and fiscal policy is handled by the government. Taxation is a part of a fiscal decision.
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Microeconomics is the study of the effects of changes to small individual decisions A) Is huge, study of the whole country. B) Is huge, nationwide production increase C) this effects just one industry. D) again huge, nationwide effects of interest rates on GDP. So C.
The eco-nomy was in long-run equilibrium when aggre-gate demand increased. At this point in time, the expec-ted inflation has start-ed to adjust to the new high-er actual inflation rate. Accor-ding to the (Friedman) natural rate the-ory, this means the unemploy-ment rate in the economy must curr-ently be <u><em>below the natu-ral rate</em></u>.
Milton Friedman defi-ned the natural rate of unemploy-ment as the level of unemployment that result-ed from real economic forces, the long-run level of whi-ch could not be altered by monet-ary policy. Accor-ding to the general equili-brium model of economics, natural unemploy-ment is equal to the level of unemploy-ment of a labor mark-et at perfect equilibrium.
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