Economy, asked by zeeldesai1011, 1 month ago

What is the mechanism at work that causes the increase in a country's government spending to have an impact on foreign countries' production and income?​

Answers

Answered by Anonymous
2

government spending is one of the components of aggregate demand, an increase in government spending will shift the demand curve to the right. A reduction in taxes will leave more disposable income and cause consumption and savings to increase, also shifting the aggregate demand curve to the right.

Similar questions