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Since our GDP formula for expeditures has gov spending as part of it, a direct change in gov spending will have a direct impact on
Since our GDP formula for expeditures has gov spending as part of it, a direct change in gov spending will have a direct impact on GDP. GDP = C + I + G + NX. Also taxes impact disposable income that effects how much we demand and purchase, that can shift the AD curve
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
