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-Refer to the Above Figure

Question 102

Multiple Choice

-Refer to the above figure. If the economy is at E and the government wants to increase aggregate demand to , but the increase in spending only shifts the aggregate demand curve to , then A) complete crowding out has occurred. B) some crowding out has occurred. C) the increased borrowing caused interest rates to fall. D) the short-run aggregate supply curve is steeper than the figure indicates.
-Refer to the above figure. If the economy is at E and the government wants to increase aggregate demand to -Refer to the above figure. If the economy is at E and the government wants to increase aggregate demand to , but the increase in spending only shifts the aggregate demand curve to , then A) complete crowding out has occurred. B) some crowding out has occurred. C) the increased borrowing caused interest rates to fall. D) the short-run aggregate supply curve is steeper than the figure indicates. , but the increase in spending only shifts the aggregate demand curve to -Refer to the above figure. If the economy is at E and the government wants to increase aggregate demand to , but the increase in spending only shifts the aggregate demand curve to , then A) complete crowding out has occurred. B) some crowding out has occurred. C) the increased borrowing caused interest rates to fall. D) the short-run aggregate supply curve is steeper than the figure indicates. , then


A) complete crowding out has occurred.
B) some crowding out has occurred.
C) the increased borrowing caused interest rates to fall.
D) the short-run aggregate supply curve is steeper than the figure indicates.

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