In the Keynesian model, raising government purchases and lowering taxes have the same effects on output and

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In the Keynesian model, raising government purchases and lowering taxes have the same effects on output and the composition of output in the long run. Do you agree with this statement? Explain your answer using the $A D-A S$ model.

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Macroeconomics

ISBN: 9780134167398

9th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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Question Posted: Apr 30, 2024 01:01 AM

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In the Keynesian model, raising government purchases and lowering taxes have the same effects on output and

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In the Keynesian model raising government purchases and lowering taxes are both expansionary fiscal policies aimed at increasing aggregate demand AD t...View the full answer

Macroeconomics

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