An increase in government expenditure can-------------------- potential GDP and an increase in taxes can-------------------- potential GDP.
A) never change; never change
B) increase; increase
C) increase; never change
D) increase; decrease
E) decrease; decrease
Correct Answer:
Verified
Q29: The supply-side effects of a change in
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A)spending by the
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Q37: Ignoring any supply-side effects, to close an
Q38: If government expenditure increases by $200 billion
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