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If the Economy Is Experiencing Demand-Pull Inflation, Then the Appropriate

Question 4

Multiple Choice

If the economy is experiencing demand-pull inflation, then the appropriate government policy would be to shift the aggregate demand curve by using a:


A) tax increase coupled with spending cuts.
B) tax increase coupled with more spending.
C) tax cut coupled with spending cuts.
D) tax cut coupled with more spending.
E) tax cut coupled with spending cuts

Correct Answer:

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