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If Government Expenditure Increases by $200 Billion and Taxes Simultaneously

Question 60

Multiple Choice

If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion, then aggregate demand


A) increases only if aggregate supply increases.
B) increases no matter what happens to aggregate supply.
C) remains the same.
D) increases only if aggregate supply decreases.
E) decreases no matter what happens to aggregate supply.

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