Question: To counteract a decrease in aggregate supply, the government decides to increase spending. This will fix the problem of low output but it causes to

To counteract a decrease in aggregate supply, the government decides to increase spending. This will fix the problem of low output but it causes to increase further.Government spending is a policy that is best suited to -run demand shocks.What is the trade-off faced by policy-makers when increasing government spending? Multiple choice question. Stable prices and fixed output Low prices and slower output adjustment High prices and rapid output adjustment

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