When using the Aggregate Expenditures model (or Simple Keynesian Model) Increasing taxes and increasing government spending move GDP in the same direction but have differ in their strength. True O False

When using the Aggregate Expenditures model (or Simple Keynesian Model) Increasing taxes and increasing government spending move GDP in the same direction but have differ in their strength. True O False

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 4TY

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Question

When using the Aggregate Expenditures model (or Simple Keynesian Model)
Increasing taxes and increasing government spending move GDP in the same
direction but have differ in their strength.
True
False

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