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What Is the Most Likely Effect of an Increase in Government

Question 113

Multiple Choice

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?


A) It would shift the aggregate-demand curve to the left.
B) It would shift the long-run aggregate-supply curve to the left.
C) It would shift the short-run aggregate-supply curve to the left.
D) It would shift the long run aggregate-supply curve to the right.

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