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    Exam 15: Modern Macroeconomics: From the Short Run to the Long Run
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    Which Policy Is Effective in Getting the Economy Out of a Recession
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Which Policy Is Effective in Getting the Economy Out of a Recession

Question 26

Question 26

Essay

Which policy is effective in getting the economy out of a recession if the economy is in a liquidity trap? Which policy is ineffective?

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If the economy finds itself in a liquidi...

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