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    Principles of Macroeconomics
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    Exam 14: Aggregate Demand and Aggregate Supply
  5. Question
    When the Government Spends More, What Is the Initial Effect
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When the Government Spends More, What Is the Initial Effect

Question 247

Question 247

Multiple Choice

When the government spends more, what is the initial effect?


A) Aggregate demand shifts right.
B) Aggregate demand shifts left.
C) Aggregate supply shifts right.
D) Aggregate supply shifts left.

Correct Answer:

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