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    Principles of Economics Study Set 3
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    In the Short Run,an Increase in Government Expenditures
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In the Short Run,an Increase in Government Expenditures

Question 322

Question 322

Multiple Choice

In the short run,an increase in government expenditures


A) raises the price level,but not real GDP.
B) raises real GDP,but not the price level.
C) raises real GDP and the price level.
D) raises neither real GDP nor the price level.

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