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Question
In the traditional Keynesian model, if the government increases spending, then
A) real Gross Domestic Product (GDP) will rise and the price level will remain constant.
B) real Gross Domestic Product (GDP) will increase and the price level will fall.
C) both real Gross Domestic Product (GDP) and the price level will rise.
D) real Gross Domestic Product (GDP) will remain constant and the price level will rise.
Answer
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