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    Macroeconomics Study Set 17
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    Exam 16: Fiscal Policy
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    An Equal Increase in Government Purchases and Taxes Will Cause
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An Equal Increase in Government Purchases and Taxes Will Cause

Question 35

Question 35

Multiple Choice

An equal increase in government purchases and taxes will cause


A) an increase in real GDP.
B) no change in real GDP.
C) an increase in the budget surplus.
D) a reduction in cyclically adjusted budget surplus.

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