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    Principles of Macroeconomics
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    Exam 12: Government and Fiscal Policy
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    A Recessionary Gap Can Be Closed with
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A Recessionary Gap Can Be Closed with

Question 76

Question 76

Multiple Choice

A recessionary gap can be closed with


A) using a contractionary monetary policy.
B) an increase in taxes.
C) a decrease in government purchases.
D) using an expansionary fiscal policy.

Correct Answer:

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