Answer to Question #82961 in Economics for ali

Question #82961
will aggregate output rise or fall if an increase in autonomous consumption, expenditure is matched by an equal increase in taxes?
1
Expert's answer
2018-11-13T12:18:10-0500

An increase in autonomous consumption, expenditure is not counted as increase in government spending, so it is not expansionary fiscal policy, which should be matched by an equal increase in taxes, that's why aggregate output will fall.

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