Using aggregate demand and aggregate supply curves, graphically illustrate the effect of an increase in government spending on the price level and equilibrium level of output in the long- run. Assume that the economy is initially in long- run equilibrium at full employment.

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The Answer of Using aggregate demand and aggregate supply curves, graphically illustrate the effect of an increase in government spending on the price level and equilibrium level of output in the long- run. Assume that the economy is initially in long- run equilibrium at full employment.

Using Aggregate Demand and Aggregate Supply Curves, Graphically Illustrate the Effect