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Global unrest has people in the United States very nervous. Both the real growth rate and t inflation rate fall. If fiscal stimulus (i.e. ,
Global unrest has people in the United States very nervous. Both the real growth rate and t inflation rate fall. If fiscal stimulus (i.e. , an increase in government spending ) increases aggregate demand, then fiscal stimulus increases the unemployment rate . decreases the unemployment rate in the short run . lowers the inflation rate . raises the price level without increasing aggregate output or decreasing the unemployment rate
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