Explain how will this combined tax-transfer policy affect

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Suppose the government decides to increase taxes by $40 billion in order to increase Social Security by the same amount. Explain how will this combined tax-transfer policy affect aggregated demand at current prices?

the Economic Issues No. 26 report by Mahmood Hasan Khan of the International Monetary Fund entitled "Rural poverty in developing countries: Implications for public policy" at the following.

 

Reference no: EM1348896

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