They can cause a demand shock and inflation in the market. As after a disaster the demand for the basic goods increase.
It will increase by 50,000 because the multiplier in the nation is 10. and any increase in the expenditure will increase the total output by 10 times.
Inward shift means a decrease in the capacity of the nation.
Increase in the government expenditure will have a greater effect than an increase in the taxes. it will increase the output and increase the price.
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