Assume that the government increases its spending by 100, Business Economics

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Assume that the government increases its spending by 100

Assume that the government increases its spending by $100 million to stimulate demand. In the long run, the effect of this spending is to

increase output by more than $100 million.

increase output by $100 million.

raise prices.

increase unemployment.

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Business Economics: Assume that the government increases its spending by 100

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Business Economics: Assume that the government increases its spending by 100

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