Supply-side economists believe that changes in government purchases affect which of the following?

Question

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Supply-side economists believe that changes in government purchases affect both aggregate demand and aggregate supply. This is because government spending can stimulate demand in the short run, but in the long run, it can also affect the supply side of the economy by providing incentives for investment and production. Additionally, supply-side economists argue that lower taxes and less regulation can also stimulate supply and thus have an impact on aggregate supply.

Supply-Side Economists Believe That Changes in Government Purchases Affect Which