Which cumulative expenditures are increased

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Reference no: EM1344249

Q. Assume the equilibrium level of income exceeds the full employment level of income also there is high inflation. Hence, the government decides to implement a fiscal approach which will act to reduce national o/p also prices. This can be accomplished by increasing government expenditure such which cumulative expenditures are increased. Raising taxes also government expenditure by the same amount such which cumulative provide is decreased also cumulative demand is increased. Decreasing government expenditure such which cumulative demand is reduced. Lowering standard tax rates such which cumulative provide is increased. Increasing transfer payments such which cumulative expenditures decline.

Reference no: EM1344249

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