When considering the aggregate demand curve, the wealth effect, interest rate effect and effects from international trade reinforce each other
Indicate whether the statement is true or false
TRUE
Economics
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According to the new classical view, when the actual price level is greater than the expected price level
A) aggregate output is above the full employment level. B) aggregate output is below the full employment level. C) the aggregate supply curve will slope downward. D) the coefficient a is equal to zero.
Economics
“If taxes and government spending are increased by the same amount, there will still be a positive effect on equilibrium GDP.” Explain.
What will be an ideal response?
Economics