Government spending is set by the federal authorities in such a way that aggregate supply just equals aggregate spending.

Question

Quizplus · Accepted Answer

Government spending is set by the federal authorities based on various factors such as economic growth targets, social welfare goals, and infrastructure development needs. It does not necessarily have to be equal to aggregate spending, which is the total spending by households, businesses, and government on goods and services in an economy.

Government Spending Is Set by the Federal Authorities in Such