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Match each government action with its most likely outcome.

1. The government begins spending more money in the economy.
- People spend more on goods and services.

2. The government begins spending less money in the economy.
- People spend less on goods and services.

Sagot :

GinnyAnsweridn

Final answer:

Government spending impacts aggregate demand and influences people's spending in the economy.


Explanation:

Government spending plays a crucial role in influencing the economy. Higher government spending typically leads to an increase in aggregate demand, which results in increased spending on goods and services by the people. Conversely, when the government reduces its spending in the economy, it usually leads to a decrease in aggregate demand, causing people to spend less on goods and services.


Learn more about Government spending and aggregate demand here:

https://brainly.com/question/38065332


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