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Business, 05.11.2019 00:31 brenda9495

Suppose that economic policy makers want to increase real gdp by $100 with as little impact on the budget balance as possible. should they increase government purchases of goods and services, increase transfer payments, or decrease taxes? suppose the economy is in short-run equilibrium. use the ad–as model to predict short-run changes to real gdp and the aggregate price level if commodity prices suddenly increase. explain your reasoning.

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