Classical Economists Argue That an Increase in Government Expenditures Will

question 49

Multiple Choice

Classical economists argue that an increase in government expenditures will

• A)shift FE line to right increasing full-employment output.
• B)shift FE line to left decreasing full-employment output.
• C)shift FE line to right increasing interest rate.
• D)shift FE line to right decreasing labour supply.

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