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Figure 16-12 Refer to Figure 16-12. An increase in government purchases causes aggregate demand to shift ultimately from AD1 to AD2. In the new equilibrium
Figure 16-12 Refer to Figure 16-12. An increase in government purchases causes aggregate demand to shift ultimately from AD1 to AD2. In the new equilibrium at point B, both real GDP and the price level have increased. The increase in real GDP is ________ than that indicated by the multiplier effect with a constant price level
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