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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    As the Economy Approaches Full Employment, the Size of the Multiplier
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As the Economy Approaches Full Employment, the Size of the Multiplier

Question 280

Question 280

Multiple Choice

As the economy approaches full employment, the size of the multiplier will


A) remain unchanged.
B) become negative.
C) become larger.
D) become smaller.

Correct Answer:

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