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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    An Increase in Government Spending on Goods to Build or Repair
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An Increase in Government Spending on Goods to Build or Repair

Question 65

Question 65

Multiple Choice

An increase in government spending on goods to build or repair infrastructure


A) shifts the aggregate demand curve to the right.
B) has a multiplier effect.
C) shifts the aggregate supply curve to the right,but this effect is likely more important in the long run.
D) All of the above are correct.

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