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In: Economics

When the Aggregate supply curve is in the intermediate phase, if Government deficit spending increases and...

When the Aggregate supply curve is in the intermediate phase, if Government deficit spending increases and increases Aggregate Demand then:

Real GDP increases, Jobs are created and the CPI increases

Real GDP increases, the CPI increases but the unemployment rate increases

the unemployment rate falls, the CPI rises and Real GDP stays the same

the CPI increases, Real GDP falls and the unemployment rate falls

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Expert Solution


Rahul Sunny answered 1 year ago
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