The diagram below is for a closed economy which begins in long-run equilibrium at Y* and 
. 
FIGURE 31-3
-Refer to Figure 31-3.Suppose the government in this closed economy implements an expansionary fiscal policy,which increases the budget deficit.When the economy reaches its new long-run equilibrium,how has the composition of national income changed?
Definitions:
Where Do We Come From
Often a philosophical or existential question that seeks to understand human origins, purpose, and connection to the universe.
Tahiti
An island in the South Pacific, part of the Windward group of the Society Islands of French Polynesia, known for its vibrant culture, history, and picturesque landscapes.
Gauguin
Paul Gauguin, a French Post-Impressionist artist known for his bold experimentation with color and depictions of Tahitian life, breaking away from European artistic conventions.
Pairwise Votes
A voting system method where candidates are compared to each other in pairs, with votes indicating preference between each pair to determine a winner.
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