3. When resources are idle, each round of additional spending generated by the multiplier will expand real

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3. When resources are idle, each round of additional spending generated by the multiplier will expand real output and employment. When there are few idle resources, the increased spending will be inflationary.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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