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    Macroeconomics Study Set 67
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    Exam 13: Business Cycle Models With Flexible Prices and Wages
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    Compared to Monetary Policy, Fiscal Policy Leads to
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Compared to Monetary Policy, Fiscal Policy Leads to

Question 5

Question 5

Multiple Choice

Compared to monetary policy, fiscal policy leads to


A) more efficient outcomes.
B) larger changes in output.
C) more private spending relative to public.
D) more stable prices.
E) the price level fluctuates more in the short run.

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