For a given level of GDP, if the government reduces its purchase of consumption goods and services
Fantastic news! We've Found the answer you've been seeking!
Question:
For a given level of GDP, if the government reduces its purchase of consumption goods and services by $100 and increases its transfer payment to the domestic households by $100 at the same time, will the national saving of the economy increase, decrease, remain unchanged, or that we cannot predict the direction of change for sure? Explain.
Posted Date: