question archive Show graphically how the AS and AD graphs help to determine the equilibrium in the economy and then show how an increase in government expenditure will change the equilibrium in the economy
Show graphically how the AS and AD graphs help to determine the equilibrium in the economy and then show how an increase in government expenditure will change the equilibrium in the economy
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Show graphically how the AS and AD graphs help to determine the equilibrium in the economy and then show how an increase in government expenditure will change the equilibrium in the economy. Do it in two stages. First show how the graph changes with the initial increase in government expenditure and then what happens after the multiplier process works through the economy.
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