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Maurinko [17]
2 years ago
5

An increase in government purchases will increase aggregate demand because:.

Business
1 answer:
Daniel [21]2 years ago
8 0

Answer:

Explanation below.

Explanation:

Think of it like this:

Consumption + Investment + Government Spending + Net Exports = AD

When Government spending goes up, it is increasing AD within (C+I+G+X), so AD shifts right.

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