The government is increasing government purchases to finish the construction of a mega project. What would be the short-run and long-run impact graphically of this policy on the macroeconomic equilibrium point using the AD and AS model (assume that this economy initially operates at the potential level of GDP before the increase in government purchases). What would be the short-run and long-run impact of the increase in government purchase

The government is increasing government purchases to finish the construction of a mega project. What would be the short-run and long-run impact graphically of this policy on the macroeconomic equilibrium point using the AD and AS model (assume that this economy initially operates at the potential level of GDP before the increase in government purchases). What would be the short-run and long-run impact of the increase in government purchase

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 3WNG

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The Qatari government is increasing government purchases to finish the construction of 2022 World Cup projects. Show graphically the short-run and long-run impact of this policy on the macroeconomic equilibrium point using the AD and AS model (assume that Qatar's economy initially operates at the potential level of GDP before the increase in government purchases). What would be the short-run and long-run impact of the increase in government purchases.
The Qatari government is increasing government purchases to finish the construction of 2022 World Cup projects. Show graphically the short-run and long-run impact of this policy on the macroeconomic equilibrium point using the AD and AS model (assume that Qatar's economy initially operates at the potential level of GDP before the increase in government purchases).
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