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    Use the AD/AS model to show how increases in government spending can lead to more inflation.

    An increase in government spending shifts the AD curve to the right, raising both income and price levels.

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Source:  OpenStax, Principles of macroeconomics for ap® courses. OpenStax CNX. Aug 24, 2015 Download for free at http://legacy.cnx.org/content/col11864/1.2
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