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Which of the Following Is Consistent with the Supply-Side Theories

Question 73

Multiple Choice

Which of the following is consistent with the supply-side theories?


A) When there is a recession, the Bank of Canada should decrease the money supply.
B) A shift in aggregate supply leads to a permanent increase in the natural rate of output.
C) The government should periodically increase the minimum wage and unemployment insurance benefits.
D) Aggregate demand does not shift in the short run.

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