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Policy-Makers' Use of Stabilization Policy Is More Appropriate When the Self-Correcting

Question 105

Multiple Choice

Policy-makers' use of stabilization policy is more appropriate when the self-correcting mechanism that eventually eliminates an output gap works ________ and when the output gap is very ________.


A) rapidly;large
B) rapidly;small
C) rapidly;recent
D) slowly;large
E) slowly;small

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