Each of the following headlines describes an event that will have an effect on desired aggregate expenditure.

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Each of the following headlines describes an event that will have an effect on desired aggregate expenditure. What will be the effect on equilibrium national income? In each case, describe how the event would be illustrated in the \(45^{\circ}\)-line diagram.

a. "Minister takes an axe to the armed forces."

b. "Russia agrees to buy more Canadian wheat."

c. "High-tech firms to cut capital outlays."

d. "Finance minister pledges to cut income-tax rates."

e. "U.S. imposes import restrictions on Canadian lumber."

f. "Booming Chinese economy expands market for Canadian coal."

g. "Weak dollar spurs exports from Ontario manufacturers."

h. "Prime minister promises burst of infrastructure spending."

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Related Book For  answer-question

Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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