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10.2 The building blocks of keynesian analysis  (Page 8/15)

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  • Card 8 / 15:
    Suppose the U.S. Congress cuts federal government spending in order to balance the Federal budget. Use the AD/AS model to analyze the likely impact on output and employment. Hint : revisit .

    A decrease in government spending will shift AD to the left.

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Practice FlashCards 7 Key Terms 5

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Source:  OpenStax, University of houston downtown: macroeconomics. OpenStax CNX. May 28, 2014 Download for free at http://legacy.cnx.org/content/col11653/1.3
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