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    Principles of Economics Study Set 1
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    Exam 25: Spending and Output in the Short Run
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    A Fiscal Policy Action to Close a Recessionary Gap Is
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A Fiscal Policy Action to Close a Recessionary Gap Is

Question 23

Question 23

Multiple Choice

A fiscal policy action to close a recessionary gap is to:


A) increase taxes.
B) decrease transfer payments.
C) increase government purchases.
D) increase the marginal propensity to consume.

Correct Answer:

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