Government expenditures on goods and services have an indirect impact on the aggregate demand, while taxes have a direct impact.

Name: Government expenditures on goods and services have an indirect impact on the aggregate demand, while taxes have a direct impact.
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Question

Quizplus · Accepted Answer

Government expenditures directly affect aggregate demand by increasing overall spending in the economy, while taxes indirectly affect aggregate demand by influencing disposable income and consumption.

Government Expenditures on Goods and Services Have an Indirect Impact