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In the Short-Run Keynesian Model, to Close a Recessionary Gap

Question 107

Multiple Choice

In the short-run Keynesian model, to close a recessionary gap of $1 billion dollars government purchases must be:

A) increased by $1 billion.
B) decreased by $1 billion.
C) increased by more than $1 billion.
D) increased by less than $1 billion.

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