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27-05-2023
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If government spending increases and taxes are raised to keep the budget balanced, which of the following is true?
A. Two components of aggregate demand will decrease. The AD curve shifts to the left.
B. One component of aggregate demand will increase and another will decrease. The AD curve shifts to the right.
C. Two components of aggregate demand will increase. The AD curve shifts to the right.
D. One component of aggregate demand will increase and another will decrease. The AD curve shifts to the left.

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