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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    Government Expenditures on Capital Goods Such as Roads Could Increase
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Government Expenditures on Capital Goods Such as Roads Could Increase

Question 131

Question 131

True/False

Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run.

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