Aggregate demand curve to the right.
Stay Golden
When unemployment has increased
Increase government spending in order to stimulate the economy
the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.
. When unemployment has decreased
It will most likely stimulate private spending
When unemployment has increased
When unemployment has increased
Increase government spending in order to stimulate the economy
Lower taxes to make it easier for consumers and business to spend money.
the goal is to get the consumer to increase their spending
the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.
. When unemployment has decreased
increase taxesincrease taxesincrease taxes.
It reduces the money available for private sector spending.
b. investment spending falls
It will most likely stimulate private spending
It will most likely stimulate private spending