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A Reduction in Government Spending Causes the Equilibrium Level of Aggregate

Question 74

Multiple Choice

A reduction in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant.


A) rise; MP; right
B) fall; IS; left
C) fall; MP; left
D) rise; IS; right

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