Question: Suppose the current administration decides to decrease govemment expenditures as a means to cut the existing government budget deficit. The aggregate economy is depicted in
Suppose the current administration decides to decrease govemment expenditures as a means to cut the existing government budget deficit. The aggregate economy is depicted in the graph to the right. 1) Using the line drawing tool, draw the curve that will shitt as a result of this policy move. Properly label your line. 2) Using the point drawing tool, locate the new equalibrium point. Carefully follow the instructions above, and only draw the required objects
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