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    Principles of Economics Study Set 1
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    Exam 27: Aggregate Demand, Aggregate Supply, and Inflation
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    If Policymakers Deem Inflation as Being Too High, Then the Policy
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If Policymakers Deem Inflation as Being Too High, Then the Policy

Question 8

Question 8

Multiple Choice

If policymakers deem inflation as being too high, then the policy response should be monetary ________, which shifts aggregate demand ________.


A) tightening; right
B) tightening; left
C) easing; right
D) easing; a left

Correct Answer:

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