Question: When real GDP is less than potential GDP, an increase in government expenditures will ________ real GDP and ________ the price level. increase; lower decrease;

  1. When real GDP is less than potential GDP, an increase in government expenditures will ________ real GDP and ________ the price level.
  2. increase; lower
  3. decrease; raise
  4. increase; raise
  5. decrease; lower

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