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According to the Traditional Keynesian Approach, If the Government Increases

Question 265

Multiple Choice

According to the traditional Keynesian approach, if the government increases spending by $5 million and raises current taxes by $5 million at the same time, then


A) real GDP will increase by $5 million.
B) real GDP will decrease by $5 million.
C) real GDP will decrease by more than $5 million.
D) real GDP will remain the same.

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