Use the aggregate expenditures model to show how government fiscal policy could eliminate either a recessionary expenditure
Question:
Recessionary and inflfl ationary expenditure gaps
Explain how equal-size increases in G and T could eliminate a recessionary gap and how equal-size decreases in G and T could eliminate an inflationary gap.
Transcribed Image Text:
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Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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