Question

Suppose Congress decided to reduce transfer
payments (such as welfare) but to increase purchases
of goods and services by an equal amount. Thus is it undertakes a change in fiscal policy such that change in G= -change in TR.
a: Would you expect equilibrium income to rise
fall as a result of this change? Why?
b: Find the change in
equilibaiürn income.
c:What is the change in Budget Surplus, Why has budget Surplus changed?
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Answer 1

Answer:

b.find the change in equilibrium income.

Explanation:

that is correct answer