Recall the national spending identity $Y=C+I+G+Nx.$

a$.$ If government spending increases, this is modeled as an increase in

$T.$

$Q.$

$M.$

v$.$

b$.$ An increase in $G$

shifts the LRAS curve.

does not move the AD curve.

shifts the AD curve outward.

shifts the AD curve inward.

c$.$ A shift outward in the AD curve will tend to

increase inflation and increase growth.