(Answered) Suppose the government decreases government purchases but

Economics

Suppose the government decreases government purchases, but everything else in the economy remains constant.

On the following graph, shift the aggregate demand (AD) curve, the short-run aggregate supply (AS) curve, or both to show the intended short-run effect of this fiscal policy on the economy.

Because temporary tax changes ------------------------------------- , they will be --------------------------- effective as fiscal policy than anticipated.

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Macroeconomics, Economics

Category:- Macroeconomics
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