The federal government increases spending by $50 billion, and the main effect is an increase in the price level. It must be true that the economy is operating on the
A. horizontal portion of the aggregate demand curve.
B. horizontal portion of the aggregate supply curve.
C. vertical portion of the aggregate supply curve.
D. vertical portion of the aggregate demand curve.
Answer: C
Economics
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a. True b. False Indicate whether the statement is true or false
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