If the aggregate supply curve is perfectly elastic as in the Keynesian – McqOptions

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1.	If the aggregate supply curve is perfectly elastic as in the Keynesian model at low level ofnational incomes, as increase in AD will cause an increase in
A.	the rate of inflation
B.	the level of real national output
C.	the government budget deficit
D.	the level of consumer debt
Answer» C. the government budget deficit

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