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Mrac [35]
1 year ago
10

If the government wants to expand aggregate demand, it can ________ government purchases or ________ taxes.

Business
1 answer:
Jobisdone [24]1 year ago
3 0

If the government wants to expand aggregate demand, it can "rebate" government purchases or "cut" taxes.

<h3>What is aggregate demand?</h3>

The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.

Some characteristics of aggregate demand are-

  • The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.
  • The correlation between output and all prices can be seen on an aggregate demand curve.
  • In the end, the aggregate demand curve slopes downward because it predicts a fall in real gross domestic product (GDP) as prices rise.
  • Consumer spending, investment spending, government spending, and the difference between exports and imports are all added together to determine aggregate demand.
  • When one of these variables changes but the overall supply stays unchanged, aggregate demand will alter.

To know more about the aggregate demand and aggregate supply model, here

brainly.com/question/16952735

#SPJ4

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