Graphs from word to excel
Economics
If government purchases go up in the short run, what happens to GDP? Show this graphically.
If the government purchases go up, the GDP will increase during that time but when the purchases return to their normal amount, the GDP will go back to being the same.
If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph?
the graph would look like this because the consumption and government purchases have increased in the long run and hence GDP increase and moves to a new level.