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    Exam 11: Classical Business Cycle Analysis: Market-Clearing Macroeconomics
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    An Increase in Government Purchases in the Classical Model Would
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An Increase in Government Purchases in the Classical Model Would

Question 7

Question 7

Multiple Choice

An increase in government purchases in the classical model would


A) shift the production function.
B) shift the marginal product of labour curve.
C) shift the labour demand curve.
D) shift the labour supply curve.

Correct Answer:

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