Business, 14.04.2020 23:37 Molly666

Suppose that the federal administration plans to fight a deep ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately. Aggregate demand spending components include consumption (C), investment (I), government (G), and exports (X) minus imports (M). Analyze what the aggregate demand and aggregate supply model predicts about the infrastructure plan to answer the following questions.1) What happens to the level of G?A) IncreaseB) DecreaseC) Stay Constant2) What likely happens to the aggregate demand curve?A) The curve shifts to the left (A decrease in AD)B) The curve shifts to the right (An increase in AD)C) The curve remains in the same spot3) What likely happens to the level of unemployment?A) DecreasesB) Remains the sameC) Increases

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Suppose that the federal administration plans to fight a deep ongoing recession with a nationwide pl...

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