With a rise in government expenditure we

Question

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When the government increases its expenditures, it increases the demand for goods and services in the economy. This, in turn, leads to a shift in the aggregate demand (AD) curve to the right. An increase in government spending increases the demand for goods and services in multiple sectors, including infrastructure, healthcare, education, and defense. As a result, businesses receive more orders, and workers gain more employment opportunities. Hence, the aggregate demand curve shifts to the right, and output and prices increase.

With a Rise in Government Expenditure We