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Assume the Economy Is Initially Operating at the Natural Level

Question 65

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 medium run,have NO effect on which of the following?


A) employment
B) the interest rate
C) the price level
D) all of the above
E) none of the above

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