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Introduction to Economics💰
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When there is inflation, it means that there is too much spending taking place in the economy.
If the AD curve shifts to the right, then the GDP level will increase, but the P level will drop, all other things being equal.
The benefits of government spending are more visible than its costs.
Whenever the AD curve shifts to the left, both GDP and P level will drop, all other things being equal.
Government policy serves to increase efficiency.
More government purchases is a form of contractionary fiscal policy.
The broken window fallacy is a result of:Select two options.
The broken window fallacy is effectively the same as the principle of "there is no free lunch."
Much of fiscal policy is the broken window fallacy.