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An increase in government spending shifts the AD curve to the right. As a result, in the short-run: Select one: a.there will be a shift
An increase in government spending shifts theADcurve to the right. As a result, in the short-run:
Select one:
a.there will be a shift to the left of the short-run Phillips curve with lower inflation and unemployment
b.there will be an upward movement along the short-run Phillips curve as inflation rises and unemployment falls
c.there will be a shift to the right of the short-run Phillips curve with higher inflation and unemployment
d.there will be a downward movement along the short-run Phillips curve as inflation falls and unemployment rises
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