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    Modern Principles Macroeconomics
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    Exam 18: Fiscal Policy
  5. Question
    Increases in Government Spending Are NOT Very Effective in Offsetting
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Increases in Government Spending Are NOT Very Effective in Offsetting

Question 68

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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