Asked by
SARIM SHAHAB
on Nov 11, 2024
Verified
An increase in government purchases must always be accompanied by an increase in autonomous net taxes to boost aggregate demand.
Government Purchases
Expenditures by the government on goods and services that directly increase the economy's productive capacity.
Autonomous Net Taxes
Taxes that are not influenced by the level of economic activity, such as fixed taxes.
- Examine the effect of state spending and levies on the transformation of total market demand.
Verified Answer
JM
Learning Objectives
- Examine the effect of state spending and levies on the transformation of total market demand.
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