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Discuss the government decreases government purchases

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Reference no: EM131572497

Suppose the government decreases government purchases, but everything else in the economy remains constant.

On the following graph, shift the aggregate demand (AD) curve, the short-run aggregate supply (AS) curve, or both to show the intended short-run effect of this fiscal policy on the economy.

Because temporary tax changes ------------------------------------- , they will be --------------------------- effective as fiscal policy than anticipated.

Reference no: EM131572497

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