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Suppose Aggregate Demand Is Too High to Bring About the Natural

Question 33

Multiple Choice

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


A) increase in government spending
B) decrease in government spending
C) increase in taxes
D) decrease in taxes
E) b or c

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