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An increase in government spending will tend to cause:
A. Real GDP to fall and unemployment to rise.
B. Real GDP to rise and unemployment to rise.
C. Real GDP to fall and unemployment to fall.
D. Real GDP to rise and unemployment to fall.
Answer: D
Explanation:
Choice "b" is correct. An increase in government spending causes an increase in aggregate demand (i.e.,
causes the aggregate demand curve to shift right). As a result, an increase in government spending
causes real GDP to rise and unemployment to fall.
Choice "a" is incorrect. Real GDP will rise, not fall.
Choice "c" is incorrect. Unemployment will fall, not rise.
Choice "d" is incorrect. Real GDP will rise, not fall.

NEW QUESTION: 2
In the OceanStor 9000, the metadata modification scenarios include: (Multiple selection)
A. Modify the properties
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Answer: A,B,C,D

NEW QUESTION: 3

A. Option A
B. Option D
C. Option B
D. Option C
Answer: B

NEW QUESTION: 4
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Answer:
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