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    Macroeconomics Study Set 68
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    Exam 9: Business Cycles, Unemployment, and Inflation
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    An Unexpected Increase in Total Spending Will Cause an Increase
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An Unexpected Increase in Total Spending Will Cause an Increase

Question 245

Question 245

Multiple Choice

An unexpected increase in total spending will cause an increase in GDP


A) if prices are sticky.
B) if prices are fully flexible.
C) regardless of whether prices are sticky or fully flexible.
D) only if prices are stuck in the long term.

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