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The government spends $3 billion to buy police cars.Explain why aggregate demand might increase bymore or less than $3 billion.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 4P

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The government spends $3 billion to buy police cars.
Explain why aggregate demand might increase by
more or less than $3 billion.

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