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Question
Which of the following statements about fiscal policy is true?
A) Real Gross Domestic Product (GDP) can be increased above its long -run equilibrium only in the short run.
B) Real Gross Domestic Product (GDP) can never be increased above its long -run equilibrium, even for a brief period of time.
C) Government can shift the aggregate demand curve inward by increasing spending.
D) Government can shift the aggregate demand curve outward by reducing spending.
Answer
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Related questions
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