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    Macroeconomics Study Set 9
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    Exam 13: Fiscal Policy in the Short Run
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    Suppose the Economy Is in a Recession and the Government
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Suppose the Economy Is in a Recession and the Government

Question 40

Question 40

Multiple Choice

Suppose the economy is in a recession and the government decides it needs to reduce the budget deficit.Other things equal,this would tend to


A) shift the IS curve to the right.
B) shift the IS curve further to the left.
C) shift the MP curve further down.
D) shift the MP curve up.

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