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1. If the federal government increased spending then you could expect to see A.

ID: 1224064 • Letter: 1

Question

1. If the federal government increased spending then you could expect to see

A. a recession

B. a decrease in interest rates

C. a decrease in the national debt

D. an increase in the price level

2.

Short run aggregate supply will shift to the left if there is an increase in business taxes. True or False

3.

Short run aggregate supply will shift to the left if there is an increase in business taxes. True or False

3.

Stagflation can be caused by A.  increase in AD B.  decrease in the SRAS C.  decrease in the AD D.  increase in the SRAS

Explanation / Answer

1.

D. an increase in the price level

As higher spending from government might result in excess demand in economy and result in higher prices.

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