To shift the aggregate demand curve outward and thereby reduce a contractionary gap,the government could

Name: To shift the aggregate demand curve outward and thereby reduce a contractionary gap,the government could
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Question

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Increasing government spending will shift the aggregate demand curve outward as it will increase national income, output, and employment. This will lead to an increase in consumer spending and subsequently increase the aggregate demand.

To Shift the Aggregate Demand Curve Outward and Thereby Reduce