A decrease in government purchases causes the interest-sensitive components of GDP to increase in the long run.
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Q39: An economic recovery occurs only if the
Q40: Suppose government purchases have decreased. Which of
Q41: The long-run effect of increased government purchases
Q42: Which of the following would be a
Q43: Suppose, for a certain economy, real and
Q45: An increase in government purchases
A)has a positive
Q46: Which of the following would lead to
Q47: Assume that real and potential GDP are
Q48: When government purchases decline, the Fed can
Q49: Suppose government purchases have increased and the
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