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Suppose Aggregate Demand Is Too Low to Bring About the Natural

Question 44

Multiple Choice

Suppose aggregate demand is too low to bring about the Natural Real GDP level.A Keynesian policy prescription would call for a(n) _____________________ to close this recessionary gap.


A) increase in government spending
B) decrease in government spending
C) increase in taxes
D) decrease in taxes
E) a or d

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