An increase in government spending will cause a(n):
A) increase in aggregate supply.
B) decrease in aggregate supply.
C) decrease in aggregate demand.
D) increase in aggregate demand.

Name: An increase in government spending will cause a(n): A) increase in aggregate supply. B) decrease in aggregate supply. C) decrease in aggregate demand. D) increase in aggregate demand.
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Question

Quizplus · Accepted Answer

An increase in government spending directly increases aggregate demand as it leads to higher overall spending in the economy.

An Increase in Government Spending Will Cause A(n)