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Business, 23.07.2020 21:01 karsynraine9419

Assume that the increase in aggregate demand from AD1 to AD2 was the result of government spending that was financed by borrowing. Assuming that the Ricardian equivalence holds and people expect taxes to rise in future, the equilibrium income will be:

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Assume that the increase in aggregate demand from AD1 to AD2 was the result of government spending t...
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