An increase in government purchases of $20 billion will shift the aggregate demand curve to the right by
A) $20 billion.
B) less than $20 billion.
C) more than $20 billion.
D) None of the above is correct.This policy shifts the long-run aggregate supply curve.
Correct Answer:
Verified
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A)
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A)will lower disposable income and lower
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A)increase
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Q149: An equal increase in government purchases and
Q150: If the federal government wanted to counteract
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