Aggregate demand and supply have varied impacts on economy

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Aggregate demand and supply have varied impacts on economy of city. During the recession, economy faces the fall in the demand and fall in the demand brings about the unemployment to economy of city. To deal with the unemployment, there must be increase in govt expenditure. furthermore, on supply side, the shortage of supply causes inflationary pressure that is regarded as tax on poor section of society.

Reference no: EM131196045

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