ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Suppose the government increases its purchases by $16 billion. If the multiplier effect exceeds the crowding-out effect, then
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The aggregate-supply curve shifts to the right by more than $16 billion
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The aggregate-supply curve shifts to the left by more than $16 billion.
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The aggregate-demand curve shifts to the right by more than $16 billion.
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The aggregate-demand curve shifts to the left by more than $16 billion.
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Explanation:
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