Question: Using the AD-AS model, an increase in government expenditure Question 4 options: A) has no impact on real GDP, but will increase potential GDP. B)

Using the AD-AS model, an increase in government expenditure Question 4 options: A) has no impact on real GDP, but will increase potential GDP. B) increases both real GDP and the price level. C) has no impact on real GDP. D) has a full multiplier effect on real GDP, leaving the price level unchanged in the long run

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