An Increase in Government Expenditure Would Shift the
Related Products ACCT 516. Decrease government expenditure in order to decrease aggregate demand. Calculating Change In Spending Or Taxes To Close Output Gaps Video Khan Academy Decrease government expenditure in order to increase short-run aggregate supply. . Increase government expenditure in order to increase short-run aggregate supply. In the short run this increase will. Increase the autonomous tax multiplier. 16 and raise both Y and r. Web Equilibrium real GDP is 500 billion government expenditures are 80 billion the MPC09 and there are no income taxes or imports. Suppose that government expenditures increase to 100 billion. Use a combination of both increase government spending and decreased taxes. If the price level is constant after the increase in government expenditures equilibrium real GDP will be a 520 billion b 580 billion c. Click the answer you think is right A. Increase th