An economy with unemployed resources
experience an increase in government
expenditure financed by beppo borrowing :
ca) Using AD- As model , explain how the above would affect general
price levels and real output of the economy in the short-run .
b ) assuming the increase in government expenditure to be $ 10 million, explain
I other factors that would influence the extent of change in real output
as explained in ca)Macroeconomics