Economic policies are sometimes complex the following, Microeconomics

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Economic policies are sometimes complex the following

Question: Economic policies are sometimes complex. The following events took place in the same year:

a. social security taxes increased by $20 billion;

b. social security benefits increased by $20 billion;

c. government spending decreased by $10 billion;

d. taxes decreased by $10 billion.

Explain how each of these policies affect aggregate demand and aggregate supply by themselves. What is the combined effect? Is this policy combination inflationary? Defend your answer.

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Microeconomics: Economic policies are sometimes complex the following

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Microeconomics: Economic policies are sometimes complex the following

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