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Overall impact on aggregate demand

Which of the given changes to fiscal policy would have a larger overall impact on Aggregate Demand? Explain your answer in a paragraph or 2.

-A program of tax rebates, distributed uniformly across the population of those filing tax returns, amounting to $10 billion in total rebates.

-OR-

-A $10 billion increase in federal government spending on repairs to highways and bridges.

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Macroeconomics: Overall impact on aggregate demand

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Overall impact on aggregate demand

Reference No:- TGS01746210

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : U.s. short-run aggregate supply curve

Q : Scale in post-bubble japan

Q : Why competitive markets normally lead profit maximizing

Q : Calculate the steady-state rentals rate

Q : Overall impact on aggregate demand

Q : Draw out multiple supply-demand graphs

Q : Full-employment output

Q : Model of consumer surplus

Q : Supply curves to derive the market supply curve

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Overall impact on aggregate demand

Reference No:- TGS01746210

Recent Questions Asked Macroeconomics

Q : U.s. short-run aggregate supply curve

Q : Scale in post-bubble japan

Q : Why competitive markets normally lead profit maximizing

Q : Calculate the steady-state rentals rate

Q : Overall impact on aggregate demand

Q : Draw out multiple supply-demand graphs

Q : Full-employment output

Q : Model of consumer surplus

Q : Supply curves to derive the market supply curve

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