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20. Fiscal Policy
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Problem 1
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Problem 4
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Problem 12
20. Fiscal Policy
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20. Fiscal Policy / Expansionary and Contractionary Fiscal Policy / Problem 4
Problem 4
In the AD-AS model, what happens to the price level when aggregate demand increases due to higher government spending?
A
Price level decreases as aggregate demand shifts left.
B
Price level remains unchanged as aggregate demand shifts right.
C
Price level decreases as aggregate demand shifts right.
D
Price level increases as aggregate demand shifts right.
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