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Budget Projections for 2014-2020 Indicate Both Higher Levels of Government

Question 113

Multiple Choice

Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. According to the Keynesian view, this will lead to


A) an increase in aggregate supply during that decade.
B) weak aggregate demand and a continuation of recessionary conditions.
C) an increase in aggregate demand and real output.
D) higher interest rates and taxes that will retard future growth.

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