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Supply-Siders Believe That an Increase in Government Spending (An Expansionary

Question 86

Multiple Choice

Supply-siders believe that an increase in government spending (an expansionary fiscal policy) will:


A) increase both aggregate demand and aggregate supply equally.
B) increase aggregate supply but that its impact on aggregate demand depends on what the government buys.
C) have little impact on both aggregate demand and aggregate supply.
D) increase aggregate demand but that its impact on aggregate supply depends on exactly what the government buys.

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