When government purchases decline, the Fed can prevent a change in inflation or real GDP by increasing the target rate of inflation.
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Q43: Suppose, for a certain economy, real and
Q44: A decrease in government purchases causes the
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
Q49: Suppose government purchases have increased and the
Q50: If ever real GDP is above potential
Q51: The long-run effect of increased government purchases
Q52: Suppose, for a certain economy, real and
Q53: If government purchases decline, during the medium
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