If the government reduces expenditure on goods and services by $30 billion,then aggregate demand
A) increases by more than $30 billion and real GDP increases.
B) decreases by more than $30 billion and real GDP decreases.
C) decreases by $30 billion and real GDP decreases.
D) increases by $30 billion and real GDP increases.
E) increases and potential GDP increases.
Correct Answer:
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