Elucidate what could be done to encourage people to spend

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Q. Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities?

Q. One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?

Reference no: EM1358046

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