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In the Aggregate Expenditures Model, an Increase in Government Spending

Question 90

Multiple Choice

In the aggregate expenditures model, an increase in government spending causes a(n) :


A) upward shift in the aggregate expenditures curve.
B) downward shift in the aggregate expenditures curve.
C) shift in the 45-degree line.
D) rightward movement along the aggregate expenditures curve.
E) leftward movement along the aggregate expenditures curve.

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