Multiple Choice
Which of the following is the most likely effect of an increase in government spending on goods to build or repair infrastructure?
A) It would shift the aggregate demand curve to the left.
B) It would have a crowding-out effect.
C) It would shift the short-run aggregate supply curve, but not the long-run aggregate supply curve.
D) It would shift the aggregate supply curve to the right in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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