Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

What are the possible explanations for the changes in the share that government spending contributes to real GDP?

Sagot :

GinnyAnswer

Final answer:

Government spending changes can impact real GDP significantly by shifting aggregate demand, leading to changes in equilibrium real GDP.


Explanation:

Changes in government spending can significantly impact real GDP. When government spending increases, it shifts aggregate demand (AD) to the right, leading to an increase in equilibrium real GDP. Conversely, a decrease in government spending shifts AD to the left, resulting in a decrease in equilibrium real GDP. This relationship showcases how government spending plays a crucial role in influencing economic activity.


Learn more about Government Spending and Real GDP here:

https://brainly.com/question/32804144


Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.