In the Short Run, If the Government Attempts to Increase

question 239

Multiple Choice

In the short run, if the government attempts to increase aggregate demand, it should

• A) increase government spending and reduce taxes.
• B) decrease government spending and increase taxes.
• C) shift the long-run aggregate supply curve to the right.
• D) shift the short-run aggregate supply curve to the right.

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Extension

An additional period of time given to complete a task or an enhancement of existing features in products or systems.

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