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    Macroeconomics Study Set 6
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    Exam 13: Countercyclical Macroeconomic Policy
  5. Question
    A Countercyclical Policy Used to Combat the Effects of Recession
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A Countercyclical Policy Used to Combat the Effects of Recession

Question 77

Question 77

True/False

A countercyclical policy used to combat the effects of recession would shift the labor demand curve exactly back to its pre-recession level in an economy with downwardly rigid wages.

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