Business, 27.09.2019 01:10 mervesena01

In a certain year, the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases. full-employment gdp is $120 billion. to obtain price-level stability under these conditions, the government should:
a. increase tax rates and/or reduce government spending.
b. discourage personal saving by reducing the interest rate on government bonds
c. increase government expenditures.
d. encourage private investment by reducing corporate income taxes.

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In a certain year, the aggregate amount demanded at the existing price level consists of $100 billio...

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