Government Spending

Government Spending

Government Spending
According to the principles of micro economic theory (which does not take into account aggregate, or national demand, but only considers particular spheres of demand in the national economy) as prices decrease, average consumer demand will increase. For example: Oranges=60 cents/Average Consumer Demand=2

Oranges=40 cents/Average Consumer Demand=4
Eventually, even if individuals have less money to spend due to a rising national unemployment rate, micro economic theory suggests that producers will have to price their goods so c...

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