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The Government Increases the Level of Government Expenditure

Question 54

Multiple Choice

The government increases the level of government expenditure. If there is no change in the aggregate supply curve, then aggregate demand will ________, real GDP will ________, and the price level will ________.


A) increase; remain the same; increase
B) remain the same; increase; increase
C) increase; increase; increase
D) decrease; increase; increase
E) decrease; remain the same; decrease

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