Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing Multiple Choice government spending by exactly $600 billion. government spending by less than $600 billion. taxes by more than $600 billion. taxes by exactly $600 billion.

Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing Multiple Choice government spending by exactly $600 billion. government spending by less than $600 billion. taxes by more than $600 billion. taxes by exactly $600 billion.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section: Chapter Questions

Problem 1WNG

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Question

Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing
Multiple Choice
government spending by exactly $600 billion.
government spending by less than $600 billion.
taxes by more than $600 billion.
taxes by exactly $600 billion.

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