Suppose that the government decreases spending by 100
Suppose that the government decreases spending by $100 billion.What happens to aggregate demand? What is the likely effect on prices and output? Where are the new equilibrium price level and GDP relative to the old levels?
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An economy is inlong-run macroeconomic equilibrium when each of the followingaggregate demand shocks occurs. What kind of gap-inflationaryor recessionary-will the economy face after the shock
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Suppose that the government decreases spending by $100 billion.What happens to aggregate demand What is the likely effect onprices and output Where are the new equilibrium price level andGDP relative to the old levels
The assumption of independent error terms in regression analysis is often violated when using time series data and is called the problem of Autocorrelation.
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Suppose the government decreases spending by $20 billion. How much will this change equilibrium GDP if the MPC is 80 percent and the tax rate is 1/6 (16.6 percent)
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