What are the effects of an increase in government purchases, Macroeconomics

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What are the effects of an increase in government purchases

Problem

1. Give three reasons that an equilibrium might not be Pareto optimal.

2. What are the effects of an increase in government purchases?

3. Why does government spending crowd out government purchases?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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