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An increase in government purchases will increase aggregate demand because:.
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An increase in government purchases will increase aggregate demand because:.

User Stephen Curial
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12 votes

Answer:

Explanation below.

Step-by-step explanation:

Think of it like this:

Consumption + Investment + Government Spending + Net Exports = AD

When Government spending goes up, it is increasing AD within (C+I+G+X), so AD shifts right.

User DoozMen
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