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Assume the Economy Is Initially Operating at the Natural Level

Question 64

Multiple Choice

Assume the economy is initially operating at the natural level of output.Now suppose a budget is passed that calls for an increase in government spending.This increase in government spending will,in the short run,cause an increase in


A) the interest rate.
B) the price level.
C) the nominal wage.
D) all of the above
E) none of the above

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