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If a Passive Approach Is Followed in Closing an Expansionary

Question 134

Multiple Choice

If a passive approach is followed in closing an expansionary gap,_____.


A) restrictive fiscal policy would be used
B) restrictive monetary policy would be used
C) the short-run aggregate supply curve would shift to the right
D) the price level would decrease in the long run
E) an economy would experience inflationary pressure

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