Compare the effect of an increase in government expenditure on equilibrium real GDP in the AE model

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Compare the effect of an increase in government expenditure on equilibrium real GDP in the AE model with that in the short run in the AS-AD model. If the effect is the same, why? If it differs, why?

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Macroeconomics Canada In The Global Environment

ISBN: 9780321931207

9th Edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Jan 09, 2023 04:07 AM

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Compare the effect of an increase in government expenditure on equilibrium real GDP in the AE model

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In both models an increase in government expenditure sets off a multi...View the full answer

Macroeconomics Canada In The Global Environment

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