Suppose that the government reduces spending on highway construction by $10 billion. Which way does the aggregate-demand

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Suppose that the government reduces spending on highway construction by $10 billion. Which way does the aggregate-demand curve shift? Explain why the shift might be larger than $10 billion. Explain why the shift might be smaller than $10 billion.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:21 AM

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Suppose that the government reduces spending on highway construction by $10 billion. Which way does the aggregate-demand

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Principles of economics

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