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Consider a closed classical economy. Analyze the effects of a decrease in government purchases on the following. Please provide a brief explanation of your answer

Consider a closed classical economy. Analyze the effects of a decrease in government purchases on the following. Please provide a brief explanation of your answer (select the best answer in brackets)

1) Real output [ increase, decrease or no change ]

2) Consumption [ increase, decrease or no change ]

3) National saving [ increase, decrease or no change ]

4) Investment [ increase, decrease or no change ]

5) Real interest rate [ increase, decrease or no change ]

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