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A Temporary Increase in Government Spending That Leads to Only

Question 53

Multiple Choice

A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the


A) right by more than the rightward shift in output supply.
B) right by less than the rightward shift in output supply.
C) left by more than the leftward shift in output supply.
D) left by less than the leftward shift in output supply.
E) right by the same amount as the rightward shift in output supply.

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