For part (a) unemployed resources means economy at spare capacity and increase in G means increase in AD? but how

Posted: December 30th, 2021

An economy with unemployed resourcesexperience an increase in governmentexpenditure financed by beppo borrowing :ca) Using AD- As model , explain how the above would affect generalprice levels and real output of the economy in the short-run .b ) assuming the increase in government expenditure to be $ 10 million, explainI other factors that would influence the extent of change in real outputas explained in ca)

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