If government purchases increase, the expenditure line
A) will shift up and the AD curve will shift to the left.
B) will shift up and the AD curve will shift to the right.
C) will not shift and the AD curve will shift to the right.
D) will shift up and there will be an upward movement along the AD curve.
E) will shift up and there will be a downward movement along the AD curve.
Correct Answer:
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