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From an Initial Long-Run Equilibrium, If Aggregate Demand Grows Faster

Question 9

Multiple Choice

From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then the federal government would most likely


A) decrease the required reserve ratio.
B) decrease government spending.
C) decrease oil prices.
D) decrease tax rates.
E) decrease the value of the Canadian dollar.

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