Increases in Government Spending Are NOT Very Effective in Offsetting

question 68

Multiple Choice

Increases in government spending are NOT very effective in offsetting real shocks because increases in government spending shift the:

• A) AD.
• B) SRAS.
• C) LRAS.
• D) demand for loanable funds.

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A sector of industry that involves the production of goods using advanced technological processes and equipment, often associated with electronics, aerospace, and pharmaceuticals.

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