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Suppose that the government spends more on a missile defence program. How does this affect aggregate demand, aggregate output, prices, and employment in the short run? How is your answer affected by the presence of the multiplier, or an increase in taxes that the government may undertake to finance the program? Explain carefully using an ad/as diagram

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91235400

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