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Does the amount of government spending in an economy respond directly to changes in aggregate income,...

Does the amount of government spending in an economy respond directly to changes in aggregate income, wealth, or interest rates? Does it respond indirectly to changes in these variables?

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Yes, the amount of Government spending is directly related to changes in aggregate income, wealth or interest rates. Because it is directly related to all these given variables. It depends on the government whether it wants to increase the money supply in the market or not.If the government has increased their spending that means money supply has also increased which means public has more money with them now so it means now people can buy or consume more it will increase the demand in the market and eventually it will push the situation of inflation .But if the government reduces the government spending than that means now the money supply is reduced and hence the people will have less income in their hands and thus they will demand less in the market.

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