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If the Economy Is in a Recession,and the Government Increases

Question 130

Multiple Choice

If the economy is in a recession,and the government increases its spending to bring the economy back to its long-run equilibrium,the long-run level of output will:


A) return,with higher prices.
B) return,as well as original price level.
C) return,with lower prices.
D) increase,with higher prices.

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