What effect does an increase in government spending have on the aggregate demand curve in an economy? A. The aggregate demand curve shifts to the left. B. The aggregate demand curve becomes steeper. C. The aggregate demand curve shifts to the right. D. The aggregate demand curve becomes flatter.
What effect does an increase in government spending have on the aggregate demand curve in an economy? A. The aggregate demand curve shifts to the left. B. The aggregate demand curve becomes steeper. C. The aggregate demand curve shifts to the right. D. The aggregate demand curve becomes flatter.
Chapter8: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 1WNG
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Question
![What effect does an increase in government
spending have on the aggregate demand
curve in an economy?
A. The aggregate demand curve shifts to the
left.
B. The aggregate demand curve becomes
steeper.
C. The aggregate demand curve shifts to the
right.
D. The aggregate demand curve becomes
flatter.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b96cf0d-7cc7-4cda-885f-3f882ddc9cf3%2Fdfe53f7f-2df5-4fbf-abcc-0b10a279677c%2Fau6ol7_processed.png&w=3840&q=75)
Transcribed Image Text:What effect does an increase in government
spending have on the aggregate demand
curve in an economy?
A. The aggregate demand curve shifts to the
left.
B. The aggregate demand curve becomes
steeper.
C. The aggregate demand curve shifts to the
right.
D. The aggregate demand curve becomes
flatter.
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