Answer the following questions: a. If the current budget shows a surplus, what would an increase in

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Answer the following questions:
a. If the current budget shows a surplus, what would an increase in government purchases do to it?
b. What would that increase in government purchases do to aggregate demand?
c. When would an increase in government purchases be an appropriate countercyclical fiscal policy?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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