State and Local Governments During Recessions. During recessions, state governments often will have to raise taxes and cut spen

Question

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State and Local Governments During Recessions. During recessions, state governments often will have to raise taxes and cut spen

ding in order to keep their own budgets balanced. If a large number of states do this, at the national level, the aggregate demand curve will

Business

1 answer:

Sedaia [141] · Answer 1 · 2021-12-23T17:42:26+03:00

Answer:

The correct answer is Shift to the left since both of these actions are contractionary.

Explanation:

The aggregate demand is the total goods and services demanded by a country, at a certain price level, in a certain period of time.

The aggregate demand that can be accounted for measures exactly the same as GDP. So many times they are used as synonyms.

The aggregate demand curve graphically represents all the combinations between the price level and the national production with the money market and the goods market. The higher the prices, the lower the aggregate demand. The IS-LM model represents the aggregate demand curve.

State and Local Governments During Recessions. During​ recessions, state governments often will have to raise taxes and cut spen

State and Local Governments During Recessions. During recessions, state governments often will have to raise taxes and cut spen