Mathematics, 23.02.2021 19:40, fortforeman5

Assume that MPC for an economy is .5. If the government decreased taxes and purchases by the same amount, then what will happen? short run aggregate supply will decrease.

aggregate demand will increase.

short run aggregate supply will increase.

aggregate demand will decrease.

aggregate demand will not change.

Answers: 1

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Assume that MPC for an economy is .5. If the government decreased taxes and purchases by the same am...