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  3. Study Set
    Principles of Macroeconomics Study Set 8
  4. Exam
    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part A
  5. Question
    Figure 34-10 -Refer to Figure 34-10.Suppose the Multiplier Is 4 and the 4
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Figure 34-10 -Refer to Figure 34-10.Suppose the Multiplier Is 4 and the 4

Question 59

Question 59

Short Answer

Figure 34-10 Figure 34-10   -Refer to Figure 34-10.Suppose the multiplier is 4 and the economy is currently at point A.An increase in government purchases of $10 will increase aggregate demand to $----- if there is no crowding-out.If crowding-out exists,then aggregate demand will likely to increase to $-----.
-Refer to Figure 34-10.Suppose the multiplier is 4 and the economy is currently at point A.An increase in government purchases of $10 will increase aggregate demand to $----- if there is no crowding-out.If crowding-out exists,then aggregate demand will likely to increase to $-----.

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