An increase in government spending will shift the aggregate supply curve to the right.

Name: An increase in government spending will shift the aggregate supply curve to the right.
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Question

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An increase in government spending would shift the aggregate demand curve to the right, not the aggregate supply curve. An increase in aggregate supply would be caused by factors such as technological advancements or an increase in the supply of labor or capital.

An Increase in Government Spending Will Shift the Aggregate Supply