Mccrawk9206 Mccrawk9206
  • 31-03-2022
  • Business
contestada

An increase in government purchases will increase aggregate demand because:.

Respuesta :

nprocks958
nprocks958 nprocks958
  • 31-03-2022

Answer:

Explanation below.

Explanation:

Think of it like this:

Consumption + Investment + Government Spending + Net Exports = AD

When Government spending goes up, it is increasing AD within (C+I+G+X), so AD shifts right.

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