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    When Recessions Are the Result of Slowing Growth in Potential
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When Recessions Are the Result of Slowing Growth in Potential

Question 29

Question 29

Multiple Choice

When recessions are the result of slowing growth in potential output, the government's best response is a policy to:


A) increase aggregate demand.
B) decrease aggregate demand.
C) promote saving and investment.
D) reduce government spending.

Correct Answer:

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