If the economy is at full employment, increases in government spending: A) have a multiplier effect...

If the economy is at full employment, increases in government spending:

A)

have a multiplier effect on equilib

rium output.

B)

have no effect on the aggregate price level.

C)

are primarily absorbed by price increases.

D)

reduce aggregate output

Expert Solution

Rahul Sunny answered 1 year ago

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