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  3. Study Set
    Macroeconomics A Contemporary Introduction Study Set 1
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    Exam 11: Fiscal Policy
  5. Question
    If Government Purchases Increase and Net Taxes Decrease,_____
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If Government Purchases Increase and Net Taxes Decrease,_____

Question 46

Question 46

Multiple Choice

If government purchases increase and net taxes decrease,_____.


A) the price level will fall
B) money supply must rise
C) the aggregate demand curve shifts leftward
D) aggregate supply shifts rightward
E) output and employment will increase

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