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    The Economy Today Study Set 1
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    Exam 11: Fiscal Policy
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    Which of the Following Would Cause Both an Increase in the Price
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Which of the Following Would Cause Both an Increase in the Price

Question 13

Question 13

Multiple Choice

Which of the following would cause both an increase in the price level and an increase in real output?


A) A tax hike.
B) A decrease in production costs.
C) An increase in transfer payments.
D) A decrease in government spending.

Correct Answer:

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