1. By issuing new bonds to finance its budget deficit, the government is able to spend more this year than it collected in taxes. a.
1. By issuing new bonds to finance its budget deficit, the government is able to spend more this year than it collected in taxes. a. New AD curve: b. Explanation: 2. Due to the threat of rising unemployment, households begin saving a larger percentage of their disposable income. a. New AD curve: I b. Explanation
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