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What would be the effect on aggregate demand ( AD ) as a result of a decrease in government purchases and a decrease in investment?
What would be the effect on aggregate demand (AD) as a result of a decrease in government purchases and a decrease in investment?
Question 1 options:
ADwould decrease.
ADwould increase.
ADcould either increase or decrease, depending on which change was of a greater magnitude.
ADwould stay the same.
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