Suppose the federal government observes an increase in gross investment. Examine this event in terms of the aggregate demand and aggregate supply model.
a. The increase in gross investment will cause .
b. This will lead to in the price level and in real GDP.
c. fiscal policy will be used to .
d. The fiscal policy actions may include in taxes and/or in government purchases.
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Suppose the federal government observes an increase in gross investment. Examine this event in terms...
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