6. Assume the economy is operating where Y=Y₁ and P-Pe. Increasing government spending will cause: a) output to remain t

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6. Assume the economy is operating where Y=Y₁ and P-Pe. Increasing government spending will cause: a) output to remain t

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6 Assume The Economy Is Operating Where Y Y And P Pe Increasing Government Spending Will Cause A Output To Remain T 1
6 Assume The Economy Is Operating Where Y Y And P Pe Increasing Government Spending Will Cause A Output To Remain T 1 (12.5 KiB) Viewed 24 times
6. Assume the economy is operating where Y=Y₁ and P-Pe. Increasing government spending will cause: a) output to remain the same but investment will decrease in the medium run. b) output, price level and investment to increase in the medium run. c) output to remain the same but the price level will be lower in the medium run. d) output to decrease and the price level to increase in the medium run. e) output to increase and the interest rate to decrease.
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