With a vertical aggregate supply curve in place, an increase in government spending acts to raise both real GDP and the general price level.

Name: With a vertical aggregate supply curve in place, an increase in government spending acts to raise both real GDP and the general price level.
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With a vertical aggregate supply curve, an increase in government spending would not raise real GDP because the economy is at full capacity; it would only raise the general price level (inflation).

With a Vertical Aggregate Supply Curve in Place, an Increase