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    Economics A Contemporary Introduction
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    Exam 12: Fiscal Policy
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    If the Economy Is Already at Its Potential Output,then the Spending
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If the Economy Is Already at Its Potential Output,then the Spending

Question 139

Question 139

Multiple Choice

If the economy is already at its potential output,then the spending multiplier is


A) zero in the long run
B) infinite in the long run
C) 1 in the long run
D) zero in the short run
E) 1 in the short run

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