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    Economics Principles and Policy Study Set 2
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    Exam 25: Demand-Side Equilibrium: Unemployment or Inflation
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    Which One of the Following Could Cause a Recessionary Gap
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Which One of the Following Could Cause a Recessionary Gap

Question 151

Question 151

Multiple Choice

Which one of the following could cause a recessionary gap?


A) Interest rates are too low.
B) Consumers spend more than they earn.
C) Price levels are too high.
D) Businesses spend more than they save.

Correct Answer:

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