If the government were to increase its spending, it would expect:

Name: If the government were to increase its spending, it would expect:
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Question

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Increasing government spending would increase aggregate demand as it increases the level of government purchases in the economy, leading to increased output, employment, and prices. This is because individuals and businesses will have more disposable income to spend, leading to an increase in demand for goods and services.

If the Government Were to Increase Its Spending, It Would