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Question 17

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Use the following to answer questions: Use the following to answer questions: -(Figure: Short- and Long-Run Equilibrium) Refer to Figure: Short- and Long-Run Equilibrium. The government should _____ aggregate demand by _____ taxes to close the _____ gap. A) expand; increasing; inflationary B) reduce; cutting; inflationary C) expand; cutting; recessionary D) reduce; increasing; recessionary
-(Figure: Short- and Long-Run Equilibrium) Refer to Figure: Short- and Long-Run Equilibrium. The government should _____ aggregate demand by _____ taxes to close the _____ gap.


A) expand; increasing; inflationary
B) reduce; cutting; inflationary
C) expand; cutting; recessionary
D) reduce; increasing; recessionary

Correct Answer:

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