Use a graph to show the change in the aggregate demand curve resulting from an increase in
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Use a graph to show the change in the aggregate demand curve resulting from an increase in government purchases if the government purchases multiplier equals 2. On the same graph, show the change in the aggregate demand curve resulting from an increase in government purchases if the government purchases multiplier equals 4.
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The aggregate demand curve will shift to the right by the chan...View the full answer
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