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Which of the Following Will Be Observed If the U

Question 3

Multiple Choice

Which of the following will be observed if the U.S. federal government reduces fiscal spending, keeping other things constant?


A) The aggregate demand curve will shift to the right.
B) The aggregate expenditure in the economy will decrease.
C) The economy will approach potential GDP.
D) The marginal propensity to consume will increase.
E) The average price level will increase.

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