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Fiscal policy: foundational concepts

AP.MACRO: POL‑1 (EU), POL‑1.A (LO), POL‑1.A.1 (EK), POL‑1.A.2 (EK), POL‑1.A.3 (EK)

Problem

What effect does an increase in government spending have on the AD-AS model in the short run?
Choose 1 answer: