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Country X Is in the Midst of a Recession

Question 39

Multiple Choice

Country X is in the midst of a recession.If the government pursues expansionary fiscal policy,then,in the long run,the price level will ________.If it does not pursue expansionary fiscal policy,then,in the long run,the price level will ________.


A) decrease; decrease
B) increase; decrease
C) increase; increase
D) decrease; increase
E) remain unchanged; remain unchanged

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