If government expenditure on goods and services increases by $100 billion, then aggregate demand

Name: If government expenditure on goods and services increases by $100 billion, then aggregate demand
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When the government increases its expenditure on goods and services by $100 billion, aggregate demand increases by more than $100 billion due to the multiplier effect, where initial spending leads to increased income and consumption, further boosting aggregate demand.

If Government Expenditure on Goods and Services Increases by $100