Using a Short Run Aggregate Supply-Aggregate Demand diagram, what is the effect of a decrease in govemment spending on equilibrium average price level and output? O Increase in equilibrium average price level, increase in equilibrium output Decrease in equilibrium average price level, increase in equilibrium output Increase in equilibrium average price level, decrease in equilibrium output Decrease in equilibrium average price level, decrease in equilibrium output
Using a Short Run Aggregate Supply-Aggregate Demand diagram, what is the effect of a decrease in govemment spending on equilibrium average price level and output? O Increase in equilibrium average price level, increase in equilibrium output Decrease in equilibrium average price level, increase in equilibrium output Increase in equilibrium average price level, decrease in equilibrium output Decrease in equilibrium average price level, decrease in equilibrium output
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
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![Using a Short Run Aggregate Supply-Aggregate Demand diagram, what is the effect of a decrease in government spending on equilibrium average price level and
output?
Increase in equilibrium average price level, increase in equilibrium output
Decrease in equilibrium average price level, increase in equilibrium output
Increase in equilibrium average price level, decrease in equilibrium output
Decrease in equilibrium average price level, decrease in equilibrium output
00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2fa9082e-576d-4345-8d33-5ce66d169e55%2F9f330feb-0e62-4410-98fb-a1015c22adf2%2Fz8meaki_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Using a Short Run Aggregate Supply-Aggregate Demand diagram, what is the effect of a decrease in government spending on equilibrium average price level and
output?
Increase in equilibrium average price level, increase in equilibrium output
Decrease in equilibrium average price level, increase in equilibrium output
Increase in equilibrium average price level, decrease in equilibrium output
Decrease in equilibrium average price level, decrease in equilibrium output
00
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