AS-AD model:
Which one is the
correct? and WHY? Could you please explain it to me graphically
(Which curves shift (AS/AD...) etc.) TIA
When gov. reduces
deficits by increasing taxes...
in the short run, output decreases, and in the medium run,
output Returns to potential
in the short run, Government expenditures increase and thus in
the medium run, output increases
in the short run, interest rate is higher, and in the medium
run, the effect of consolidation Policy on Investment...