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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    Last Year, Total Income Increased $1,000 and Consumption Increased $800
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Last Year, Total Income Increased $1,000 and Consumption Increased $800

Question 113

Question 113

Short Answer

Last year, total income increased $1,000 and consumption increased $800. An increase in government spending equal to $10 would cause output to increase by $_____ because the multiplier is ______.

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