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Exhibit 25-1 -Suppose the Economy Is Initially at Point a in Exhibit

Question 25

Multiple Choice

Exhibit 25-1 Exhibit 25-1 -Suppose the economy is initially at point A in Exhibit 25-1. If government purchases increase, which point best depicts where the economy will be in the short run as a result of the change in spending? A) F B) D C) B D) E E) C
-Suppose the economy is initially at point A in Exhibit 25-1. If government purchases increase, which point best depicts where the economy will be in the short run as a result of the change in spending?


A) F
B) D
C) B
D) E
E) C

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