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A Decrease in Government Purchases, Other Things Constant, Would

Question 41

Multiple Choice

A decrease in government purchases, other things constant, would:


A) increase unemployment in an economy in the short run
B) increase the price level in an economy in the short run
C) decrease unemployment in an economy in the short run.
D) increase the real gross domestic product in an economy in the short run.
E) decrease the market interest rate in an economy in the short run.

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