Ayushi Asked a Question
August 25, 2020 2:06 pmpts 30 pts
64. According to Keynesian analysis, il government expendiure and taxes are incree sed by the same amount which of the following will occur ( Aggregate demand will increase (2) A EEregate demand will remain constant (3 Aggregate demand will fall (4) ABgregate supply will increase
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  • Nidhi taparia Best Answer
    Option (1) is right. This is the concept of Balanced Budget Multiplier. Balanced budget means the government increases its expenditure as much as it increases the taxes. The effect...
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