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The Basic Idea of the Fiscal Multiplier Is That an Initial

Question 2

Multiple Choice

The basic idea of the fiscal multiplier is that an initial increase in government spending will have a:


A) more than a one- to- one impact on short run aggregate supply.
B) more than a one- to- one impact on aggregate demand.
C) more than a one- to- one impact on long run aggregate supply.
D) more than a one- to- one impact on the budget deficit.

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