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nevsk [136]
1 year ago
12

an economy is experiencing a high rate of inflation. the government wants to reduce consumption by $36 billion to reduce inflati

onary pressure. if the multiplier is 2, by how much should the government cut spending to achieve its objective?
Business
1 answer:
nikitadnepr [17]1 year ago
4 0

If  the government wants to decrease the output by $36 billion then they should cut the expenditure by $18 billion.<u> (36/2) </u>should the government cut spending to achieve its objective.

<h3>Inflationary pressure:</h3>

Inflationary pressures are the underpinning causes of affectation. These pressures are the reason that the product of goods increases to meet or exceed consumer demand or that prices boost due to lack of force. Inflationary pressures beget the frugality to acclimate as a result of force and demand.

<h3>Why is there inflationary pressure?</h3>

Inflation can do when prices rise due to increases in product costs, similar as raw accoutrements and stipend. A swell in demand for products and indulgences can beget inflation as consumers are willing to pay further for the product.

Learn more about inflationary pressure:

brainly.com/question/8737053

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