n a recession, C + I + G will all decline. This shifts aggregate demand inwards, off society’s PPF. Perhaps supply is too much and deflation occurs. So, company’s cut costs and C + I + G declines again. Besides fiscal stimulus or giving people money (grow the C & the G), what is another way to stimulate C or I? Put another way, how can government stoke the animal spirits without stimulus?
n a recession, C + I + G will all decline. This shifts aggregate demand inwards, off society’s PPF. Perhaps supply is too much and deflation occurs. So, company’s cut costs and C + I + G declines again. Besides fiscal stimulus or giving people money (grow the C & the G), what is another way to stimulate C or I? Put another way, how can government stoke the animal spirits without stimulus?
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
Section: Chapter Questions
Problem 5QP
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In a recession, C + I + G will all decline. This shifts aggregate
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