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Question 2 Suppose the economy is at potential GDP (i.e. full employment), and the government increases the amount of government purchases to increase aggregate demand.

Question 2

Suppose the economy is at potential GDP (i.e. full employment), and the government increases the amount of government purchases to increase aggregate demand. What can be one potential drawback of this fiscal approach? Use graphs to explain where relevant.

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Question 2 Suppose the economy is at potential GDP (i.e. full employment), and the government increases the amount of government purchases to increase aggregate demand.

Question 2 Suppose the economy is at potential GDP (i.e. full employment), and the government increases the amount of government purchases to increase aggregate demand. What can be one potential drawback of this fiscal approach? Use graphs to explain where relevant.

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Fundamentals Of Management

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Question 2

Suppose the economy is at potential GDP (i.e. full employment), and the government increases the amount of government purchases to increase aggregate demand. What can be one potential drawback of this fiscal approach? Use graphs to explain where relevant.