Calculate both change in government purchases of goodsand

Reference no: EM13243262

In each of the following cases, either a recessionary orinflationary gap exists. Assume that the aggregate supply curve ishorizontal so that the change in real GDP arising from a shift ofthe aggregate demand curve equals the size of the shift of the curve. Calculate both the change in government purchases of goodsand services and the change in government transfers necessary toclose the gap.

Reference no: EM13243262

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