Explain how an increase in government spending would affect the DD-AA schedule in the short
Answer: An increase in government spending will increase aggregate demand, which will shift the DD to the right. If AA remains unchanged, the new equilibrium will be at a higher Y and lower E. Since E is the nominal exchange rate, a lower E is an appreciation of the currency.
© 版权声明
部分文章来自网络，只做学习和交流使用，著作权归原作者所有，遵循 CC 4.0 BY-SA 版权协议。
THE END
暂无评论内容