1) Do all government purchases have the same effect on aggregate demand? Defend your answer with economic reasoning.

Refer to the chapter readings, and make sure to provide citations (APA) to defend your answers, as appropriate. Your post must contain a min of 200 words.

Ques 2) Why do increases in government spending have a larger impact on Real GDP than tax cuts and rebates?

Ques 3) How does increased saving lead to increased investment?

Ques 4) Several very poor countries have requested aid from the United States for the development of small-scale businesses, mainly in farming and related activities. They agree that any money given to them will be spent on U.S. products and technology and to hire U.S. experts as consultants. Is the United States justified economically to provide the aid?

Your posts must contain a minimum of 200 words. You must include citations to support your responses. Text Book (Chapters 25-28) Principles of Economics

Authors: Libby Rittenberg and Timothy Tregarthen
Publisher: Flat World Education Inc.
ISBN 9781453356890

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