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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part A
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    Figure 34-10 -Refer to Figure 34-10.Suppose the Multiplier Is 2 and There
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Figure 34-10 -Refer to Figure 34-10.Suppose the Multiplier Is 2 and There

Question 57

Question 57

Short Answer

Figure 34-10 Figure 34-10   -Refer to Figure 34-10.Suppose the multiplier is 2 and there is no crowding-out,but there is an accelerator effect.If the economy is currently at point A,then an increase in government purchases of $10 will likely increase aggregate demand to point ----- where output is $-----.
-Refer to Figure 34-10.Suppose the multiplier is 2 and there is no crowding-out,but there is an accelerator effect.If the economy is currently at point A,then an increase in government purchases of $10 will likely increase aggregate demand to point ----- where output is $-----.

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