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If the Economy in the Graph Shown Is Currently at Point

Question 54

Multiple Choice

If the economy in the graph shown is currently at point B, and the government increases its spending, the likely outcome will be that the: A) economy will increase its level of output. B) economy will experience deflation. C) economy's unemployment rate will increase. D) All of these are likely to be true. If the economy in the graph shown is currently at point B, and the government increases its spending, the likely outcome will be that the:


A) economy will increase its level of output.
B) economy will experience deflation.
C) economy's unemployment rate will increase.
D) All of these are likely to be true.

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