The diagram below is for a closed economy which begins in long-run equilibrium at Y* and . FIGURE 31-3 Refer to Figure 31-3.Suppose the government in this closed economy implements an expansionary fiscal policy,which increases the budget deficit.When the economy reaches its new long-run equilibrium,how has the composition of national income changed?

Question

The diagram below is for a closed economy which begins in long-run equilibrium at Y* and  .  FIGURE 31-3 Refer to Figure 31-3.Suppose the government in this closed economy implements an expansionary fiscal policy,which increases the budget deficit.When the economy reaches its new long-run equilibrium,how has the composition of national income changed?

Quizplus · Accepted Answer

The Answer of The diagram below is for a closed economy which begins in long-run equilibrium at Y* and  .  FIGURE 31-3 Refer to Figure 31-3.Suppose the government in this closed economy implements an expansionary fiscal policy,which increases the budget deficit.When the economy reaches its new long-run equilibrium,how has the composition of national income changed?

The Diagram Below Is for a Closed Economy Which Begins