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If the Government Wants to Engage in Fiscal Policy to Increase

Question 171

Multiple Choice

If the government wants to engage in fiscal policy to increase real GDP, it could


A) increase government expenditure in order to increase short-run aggregate supply.
B) decrease government expenditure in order to increase short-run aggregate supply.
C) increase government expenditure in order to increase aggregate demand.
D) decrease government expenditure in order to decrease aggregate demand.

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