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Permanently increased government expenditures appear to retard economic growth over the long run. Which is the correct sequence of events that leads to less growth?

Permanently increased government expenditures appear to retard economic growth over the long run. Which is the correct sequence of events that leads to less growth? [G-Gov Exp; T= Taxes; D= Debt; and L= Employment; 4= Change] a) AG promotes AD, leading to AT, prompting negative AL b) AD paves the way to AT, which leads to AG, causing positive AL c) AT gives way to positive AL, leading to AGDP d) AG leads to AL, which causes negative AGDP 2

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