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    Macroeconomics Study Set 68
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    Exam 12: Aggregate Demand and Aggregate Supply
  5. Question
    Why Does Aggregate Demand Shift Outward by a Greater Amount
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Why Does Aggregate Demand Shift Outward by a Greater Amount

Question 301

Question 301

Essay

Why does aggregate demand shift outward by a greater amount than the initial increase in
spending?

Correct Answer:

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The reason is because of the multiplier....

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